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

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: 2) by Thexalon on Tuesday September 18 2018, @01:48AM

    by Thexalon (636) on Tuesday September 18 2018, @01:48AM (#736330)

    Is Bitcoin different because there is no apparent intrinsic value to it and no governmental authority declaring it has fiat value? Or some other quality that differs Bitcoin from, say, gold?

    Yes, there are differences.

    Regarding the "intrinsic value" issue: Bitcoins have a cost to obtain, via mining or purchase. Bitcoin believers think this gives them intrinsic value, but they are wrong about that, because the Bitcoins don't have any useful application - you can't use them to make anything. By contrast, gold you can use it to make things like jewelry that won't tarnish easily, and electronics.

    Regarding the "government authority" issue: Fiat currency is required to pay taxes, and is also considered a legal offer of payment of debt. In both cases, anyone doubting those factors can expect a visit from people with guns to explain matters to them. Bitcoins, not being fiat currency, don't have the organized group of people with guns backing them up.

    --
    The only thing that stops a bad guy with a compiler is a good guy with a compiler.
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