CEO Behind GAW Miners, PayCoin Ponzi Scheme Sentenced to 21 Months in Jail

Homero Joshua Garza, the CEO of the now-defunct U.S. crypto agency GAW Miners, has been sentenced to 21 months in jail for defrauding buyers, native information company Hartford Business experiences Thursday, September 13.

Garza acquired the decision within the Hartford federal court docket, following his responsible plea to a wire fraud cost associated to creating and promoting a scamcoin dubbed PayCoin (XPY).

As an alternative of serving the unique 20 yr sentence, Garza will report back to jail on January 4, 2019 and be jailed till 2021, with an extra three years of supervised launch, together with six months in dwelling detention.

Along with jail time, the previous CEO of GAW Miners must repay a $9.2 million restitution to buyers, which is the approximate quantity of economic injury wrought by the nine-month crypto rip-off.

Based in 2014, Bloomfield-based GAW Miners was a agency that specialised in manufacturing, supplying and promoting particular {hardware} for crypto mining. The corporate was shut down in 2015 following allegations of working as a Ponzi scheme, which was adopted by a lawsuit in 2016.

Created by GAW Miners builders, the PayCoin cloud mining cryptocurrency was launched in 2014. The digital forex was based mostly on the SHA-256 algorithm and each proof-of-work (PoW) and proof-of-stake (PoS) protocols.

Whereas GAW Miners had reportedly “assured” buyers a $20 flooring value for PayCoin, the best XPY value was $15.92 as a substitute, in accordance with CoinMarketCap.

In late August, the alleged former proprietor of crypto exchange BTC-e Alexander Vinnik was indicted and subjected to a “pretend” interrogation by French prosecutors in a Greek Court docket. Following a protracted authorized battle and several other decrease court docket rulings, the Greek Supreme Court docket finally ruled to extradite Vinnik to Russia.

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