Crypto Ponzi scheme AirBit: All but one exec now sentenced

The United States District Court for the Southern District of New York is advancing with the sentencing treatment of essential individuals behind the cryptocurrency Ponzi scheme AirBit Club.The office of the U.S. lawyer for New York on Oct. 3 revealed the sentencing of 3 of the 5 enduring defendants in the AirBit case, including Scott Hughes, Cecilia Millan and Karina Chairez. The sentences came months after all three defendants pleaded guilty to money laundering and other charges in the AirBit case in early 2023. Hughes, a lawyer who apparently laundered around $18 million in AirBit Club fraud proceeds, was sentenced to 18 months in jail. Millan, a senior-level promoter of AirBit Club, was sentenced to 5 years in prison. Chairez, another senior-level promoter of AirBit Club, was sentenced to one year and one day in prison.Additionally, Hughes was sentenced to 3 years of supervised release. Millan and Chairez were likewise sentenced to three years and three months of supervised release, respectively.The AirBit Club scheme was introduced in late 2015 and was promoted as a “multi-level marketing club” in the cryptocurrency industry. The offenders offered promising discussions to fool investors into thinking that AirBit Club had actually guaranteed daily returns from crypto mining and trading. However rather of funding AirBits promoted crypto operations– which in reality had actually never held true– $100 million of financiers cash went to the pockets of its creators and promoters.Despite some users complaining about withdrawal delays and surprise costs in early 2016, the AirBit Club scheme handled to maintain its deceptive activity till 2020. AirBit Club presentation by Cecilia Millan from 2019. Source: YouTubeAnnouncing the sentences, U.S. attorney Damian Williams stressed that Hughes, Millan and Chairez each played a key role in perpetuating the AirBit Club pyramid scheme.Related: 5 highlights of Sam Bankman-Frieds first day of trial” At the top-tier of promoters, Millan and Chairez for years aggressively obtained investments from and misinformed hardworking and unsophisticated financiers to line their own pockets,” Williams stated, adding:” Todays sentences send out a message that anyone who assists in cryptocurrency financial investment plans– not just those at the extremely top of the pyramid– will face severe consequences for such crimes.This comes after AirBit Club co-founder Pablo Rodriguez was sentenced to 12 years in prison in late September 2023. Dos Santos, another co-founder who has pleaded guilty to charges consisting of wire scams conspiracy, money laundering and bank fraud conspiracy, is scheduled to be sentenced on Oct. 4, 2023. Santos will be the last defendant to be sentenced out of a total six offenders behind AirBit Club. Jackie Aguilar, who pled guilty in February 2023, reportedly died in May, a few weeks prior to sentencing.Magazine: Blockchain investigators– Mt. Gox collapse saw birth of Chainalysis