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David Carmona, the founder of IcomTech, has received a nearly 10-year prison sentence for running a cryptocurrency Ponzi scheme David Carmona, the founder of IcomTech, received a nearly 10-year prison sentence after prosecutors characterized the firm as a cryptocurrency Ponzi scheme, asserting that he “exploited working-class individuals.” Carmona, 41, was sentenced to 121 months in prison on Friday by U.S. District Judge Jennifer L. Rochon, according to a statement issued by the U.S. Attorney’s Office for the Southern District of New York. In addition, he was handed a three-year term of supervised release. Carmona pleaded guilty in December 2023 to one count of conspiracy for committing wire fraud. In 2018, Carmona and his associates established IcomTech, promoting it as a cryptocurrency mining and trading company. The firm claimed that investors could earn profits by purchasing specific “purported cryptocurrency-related investment products,” according to prosecutors. However, these promises were never realized. Instead, prosecutors allege that IcomTech did not engage in mining or trading for its investors but used the funds to pay off other investors and for personal use. “David Carmona masterminded the IcomTech cryptocurrency Ponzi scheme, which preyed upon working-class people by promising them complete financial freedom in exchange for parting with their hard-earned money,” said U.S. Attorney Damian Williams in a statement. According to prosecutors, Carmona and others organized extravagant expos to attract potential investors while boasting about the substantial profits they were making. “IcomTech promoters often showed up at larger-scale events in expensive cars and wearing luxury clothing as a way of exhibiting their purportedly legitimate success from IcomTech,” the prosecution alleged. “The atmosphere of these events was festive and designed to generate excitement about the schemes.” When investors attempted to withdraw their funds in 2018, they were met with excuses, delays, and unexpected fees. Despite the mounting complaints,…

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Filed under: News - @ October 6, 2024 10:06 pm