US citizen charged with running diamond Ponzi map, cryptocurrency scam

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US citizen charged with running diamond Ponzi map, cryptocurrency scam

US citizen charged with running diamond Ponzi map, cryptocurrency scam

A 51-year-outmoded US citizen has been charged with running a diamond and cryptocurrency-primarily based totally Ponzi map.

Prosecutors affirm that Jose Angel Aman, from Washington, DC., operated a inaccurate funding map at some stage in the US and Canada, luring investors with guarantees of hasty returns in the diamond alternate.

The US Department of Justice (DoJ) stated on Friday that Aman was as soon as the operator of a Ponzi map from Might perchance perhaps additionally 2014 to Might perchance perhaps additionally 2019. In conjunction with his companions, Aman allegedly solicited other people to spend money on “diamond contracts,” in which their money may perchance perhaps perhaps be former to get rid of colossal, tough, uncut diamonds. 

These diamonds would then be reduce and polished in expose to be resold at a income. To instill belief in the group, Aman stated that funds had been backed by his have physical colored diamond stock, it seems price $25 million. 

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As is the case with many Ponzi and come by-rich-hasty schemes, investors demand to gape a reduce of the profits and without this, Ponzi schemes are exposed and collapse swiftly. Attributable to this fact, Aman allegedly former investor funds to repay earlier funding “hobby,” and as more investors joined the pool, the transfer of funds down the chain persisted — without any legit income bought from diamond purchases. 

When funds ran low and the operator was as soon as in possibility of being exposed, he allegedly created “Reinvestment Contracts” to entice users to roll over their money into new ‘provides’ in expose to get rid of Aman time to register new investors. 

Alternatively, this is able to perhaps perhaps now not place it up forever, and US prosecutors tell that Aman situation up Argyle Coin as the Ponzi map was as soon as on the verge of collapse. Argyle Coin claimed to be a cryptocurrency-project backed by diamond trading, and as a new wave of funding poured into the coffers, most efficient a “half of the money bought” was as soon as former to produce a cryptocurrency token.

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As an different, the DoJ says the huge majority of the funds had been former to repay investors from the old Ponzi program, below the names Pure Diamonds Investment Co. (Pure Diamonds) and Eagle Monetary Diamond Community Inc (Eagle). 

“For the length of the course of the Ponzi map, Aman and his companions soundless over $25 million from many of of investors,” prosecutors tell. “Aman allegedly former the money to originate purported hobby payments to investors, to pay alternate fees, to pay commissions to the companions, and to enhance his have lavish standard of living.”

Investor funds had been allegedly former for capabilities including housing lease, horse purchases, and utilizing classes.

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In 2019, the Securities and Alternate Price (SEC) bought an emergency court expose to freeze Argyle Coin’s operations. The US District Court docket for the Southern District of Florida granted a requirement for a non permanent restraining expose and asset freeze while the cryptocurrency group was as soon as investigated. 

Aman is dealing with fees of wire fraud, which may perchance perhaps destroy up in as a lot as 20 years at the support of bars, as effectively as restitution payments. 

Old and associated protection

  • 2gether hacked: €1.2m in cryptocurrency stolen, native tokens offered in trade
  • IRS provides grants for software program to tag privacy-focused cryptocurrency trades
  • Lazarus neighborhood strikes cryptocurrency firm by design of LinkedIn job adverts

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