US citizen charged with running diamond Ponzi plot, cryptocurrency rip-off

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US citizen charged with running diamond Ponzi plot, cryptocurrency rip-off

US citizen charged with running diamond Ponzi plot, cryptocurrency rip-off

A 51-365 days-used US citizen has been charged with running a diamond and cryptocurrency-based completely mostly Ponzi plot.

Prosecutors instruct that Jose Angel Aman, from Washington, DC., operated a unsuitable investment plot across the United States and Canada, luring traders with promises of instant returns within the diamond replace.

The US Department of Justice (DoJ) said on Friday that Aman became once the operator of a Ponzi plot from Could maybe 2014 to Could maybe 2019. Collectively alongside with his partners, Aman allegedly solicited folks to invest in “diamond contracts,” in which their money may possibly maybe possibly possibly be used to preserve tremendous, tough, uncut diamonds. 

These diamonds would then be cut and polished in characterize to be resold at a profit. To instill belief within the organization, Aman said that funds were backed by his personal bodily colored diamond stock, it appears price $25 million. 

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As is the case with many Ponzi and get-rich-instant schemes, traders query to gaze a cut of the earnings and with out this, Ponzi schemes are uncovered and give plot posthaste. Therefore, Aman allegedly used investor funds to repay earlier investment “passion,” and as more traders joined the pool, the switch of funds down the chain persisted — with out any loyal profit obtained from diamond purchases. 

When funds ran low and the operator became once at risk of being uncovered, he allegedly created “Reinvestment Contracts” to entice customers to roll over their money into contemporary ‘deals’ in characterize to preserve Aman time to register contemporary traders. 

Alternatively, this may possibly maybe possibly additionally no longer raise on with out end, and US prosecutors snort that Aman role up Argyle Coin as the Ponzi plot became once on the brink. Argyle Coin claimed to be a cryptocurrency-undertaking backed by diamond procuring and selling, and as a contemporary wave of investment poured into the coffers, most effective a “portion of the money got” became once used to fabricate a cryptocurrency token.

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As a replace, the DoJ says the massive majority of the funds were used to repay traders from the old Ponzi program, beneath the names Pure Diamonds Funding Co. (Pure Diamonds) and Eagle Financial Diamond Community Inc (Eagle). 

“In some unspecified time in the future of the route of the Ponzi plot, Aman and his partners serene over $25 million from hundreds of traders,” prosecutors snort. “Aman allegedly used the money to create purported passion payments to traders, to pay business expenses, to pay commissions to the partners, and to toughen his personal lavish everyday life.”

Investor funds were allegedly used for purposes including housing rent, horse purchases, and utilizing classes.

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In 2019, the Securities and Substitute Payment (SEC) obtained an emergency court docket characterize to freeze Argyle Coin’s operations. The US District Court for the Southern District of Florida granted a anticipate for a non eternal restraining characterize and asset freeze whereas the cryptocurrency organization became once investigated. 

Aman is facing prices of wire fraud, which may possibly maybe possibly additionally end result in as a lot as 20 years within the assist of bars, apart from restitution payments. 

Outdated and connected coverage

  • 2gether hacked: €1.2m in cryptocurrency stolen, native tokens offered in replace
  • IRS provides grants for software to impress privacy-focused cryptocurrency trades
  • Lazarus crew strikes cryptocurrency company thru LinkedIn job adverts

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