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Fake-Cryptocurrency Ponzi Scheme Lands Creator in Prison

posted by Fnord666 on Sunday September 16 2018, @03:13PM   Printer-friendly
from the different-kind-of-bars dept.

MrPlow writes:

Submitted via IRC for SoyCow1984

A man who, according to federal authorities, ran a fake cryptocurrency Ponzi scheme and pleaded guilty last year to one count of wire fraud is now headed to prison.

On Thursday, Homero Joshua Garza, also known as Josh Garza, has now been sentenced by a federal judge in Hartford, Connecticut, to 21 months in prison, three years of supervised release, and more than $9 million in restitution. The news was first reported Thursday by CoinDesk.

In their sentencing memorandum filed before the hearing, prosecutors were blunt in their assessment of Garza, saying that he "lied to investors and customers and took their money" to the tune of $9 million in losses spread across thousands of people worldwide.

Source: https://arstechnica.com/tech-policy/2018/09/man-who-swindled-9m-in-wannabe-bitcoin-ponzi-scheme-headed-to-prison/

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  • (Score: 1, Insightful) by Anonymous Coward on Monday September 17 2018, @12:17AM (2 children)

    by Anonymous Coward on Monday September 17 2018, @12:17AM (#735782)

    A Ponzi scheme is a form of fraud in which a purported businessman lures investors and pays profits to earlier investors using funds obtained from newer investors.

    Bitcoin is form of fraud which pays profits earlier investors using funds obtained from newer investors.

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  • (Score: 0) by Anonymous Coward on Monday September 17 2018, @12:47AM (1 child)

    by Anonymous Coward on Monday September 17 2018, @12:47AM (#735794)

    You're not understanding supply/demand.
    You're not understanding wealth creation.
    In general, you're not thinking very deeply about this; you're merely falling prey to naive (and erroneous) pattern matching.

    • (Score: 1, Interesting) by Anonymous Coward on Monday September 17 2018, @01:07AM

      by Anonymous Coward on Monday September 17 2018, @01:07AM (#735802)

      Capitalism is a Ponzi scheme. You're both right, just at different scales of thinking.