Authorities Step Up Crackdown on Crypto Fraudsters

The exponential growth of the crypto market has led to an increase in crypto scams. Besides the outright hacks that have hit some DeFi projects, fraudsters also take advantage of new investors’ naivety. However, the authorities are stepping up to help secure investors from unscrupulous people in the crypto space.

The Federal Bureau of Investigations (FBI) has charged an Instagram influencer with defrauding followers of $2.5 million in Bitcoin. The justice department accused Jay Mazini of running a wire card fraud and using it to convince his one-million-plus followers to send him Bitcoin in exchange for inflated fiat amounts. However, the justice department noted that he failed to deliver on his promises.

The charges by the Department of Justice were filed after a complaint was lodged in Brooklyn Federal Court. From the DOJ’s documents, Mazini had offered to give his followers anything between 3.5% to 5% of the trading value of Bitcoin. His selling point was that crypto exchanges had limited the amount that he could purchase, and he was looking to his followers.

Crypto Scammer Escapes SEC Hammer

In another case of the authorities taking action against fraudsters in crypto, a man in Florida has been spared from paying a $4.5 million fine that the SEC was gunning for from him on crimes of an intricate web of crypto scam companies.

The U.S District Court of Southern Florida had asked Jose Angel Aman to pay over $4.2 million-plus $300k in interest as fine to the commission for running an Ponzi scheme that drew over $30 million. However, the court later found that the fine he had paid back in 2019 was adequate.

Angel Aman is currently servicing a 7-year sentence, 3 of them in a supervised release. He has also been ordered to pay over $23 million as restitution to the SEC in 2019.

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