Crypto Ponzi scheme AirBit: All but one exec now sentenced

The United States District Court for the Southern District of New York is progressing with the sentencing process of cardinal individuals down the cryptocurrency Ponzi strategy AirBit Club.

The bureau of the U.S. lawyer for New York connected Oct. 3 announced the sentencing of 3 of the 5 surviving defendants successful the AirBit case, including Scott Hughes, Cecilia Millan and Karina Chairez. The sentences came months aft all 3 defendants pleaded guilty to wealth laundering and different charges successful the AirBit lawsuit successful aboriginal 2023.

Hughes, an lawyer who allegedly laundered astir $18 cardinal successful AirBit Club fraud proceeds, was sentenced to 18 months successful prison. Millan, a senior-level promoter of AirBit Club, was sentenced to 5 years successful prison. Chairez, different senior-level promoter of AirBit Club, was sentenced to 1 twelvemonth and 1 time successful prison.

Additionally, Hughes was sentenced to 3 years of supervised release. Millan and Chairez were besides sentenced to 3 years and 3 months of supervised release, respectively.

The AirBit Club strategy was launched successful precocious 2015 and was promoted arsenic a “multi-level selling club” successful the cryptocurrency industry. The defendants provided promising presentations to instrumentality investors into reasoning that AirBit Club had guaranteed regular returns from crypto mining and trading. But alternatively of backing AirBit’s promoted crypto operations — which successful information had ne'er been the lawsuit — $100 cardinal of investors’ wealth went to the pockets of its founders and promoters.

Despite immoderate users complaining astir withdrawal delays and hidden fees successful aboriginal 2016, the AirBit Club scheme managed to support its fraudulent enactment until 2020.

AirBit Club presumption by Cecilia Millan from 2019. Source: YouTube

Announcing the sentences, U.S. lawyer Damian Williams stressed that Hughes, Millan and Chairez each played a cardinal relation successful perpetuating the AirBit Club pyramid scheme.

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“At the top-tier of promoters, Millan and Chairez for years aggressively solicited investments from and misled hardworking and unsophisticated investors to enactment their ain pockets,” Williams said, adding:

“Today’s sentences nonstop a connection that anyone who facilitates cryptocurrency concern schemes — not lone those astatine the precise apical of the pyramid — volition look superior consequences for specified crimes.

This comes after AirBit Club co-founder Pablo Rodriguez was sentenced to 12 years successful situation successful precocious September 2023. Dos Santos, different co-founder who has pleaded blameworthy to charges including ligament fraud conspiracy, wealth laundering and slope fraud conspiracy, is scheduled to beryllium sentenced connected Oct. 4, 2023.

Santos volition beryllium the past suspect to beryllium sentenced retired of a full six defendants down AirBit Club. Jackie Aguilar, who pled blameworthy successful February 2023, reportedly passed distant successful May, a fewer weeks anterior to sentencing.

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