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-one year-frail US citizen has been charged with running a diamond and cryptocurrency-essentially based mostly Ponzi plot.

Prosecutors claim that Jose Angel Aman, from Washington, DC., operated a fraudulent funding plot within the direction of the US and Canada, luring patrons with promises of quick returns within the diamond change.

The US Department of Justice (DoJ) mentioned on Friday that Aman modified into as soon as the operator of a Ponzi plot from Also can 2014 to Also can 2019. Along with his partners, Aman allegedly solicited folk to put money into “diamond contracts,” in which their money would be frail to purchase sizable, tough, uncut diamonds. 

These diamonds would then be decrease and polished in yell to be resold at a profit. To instill trust within the organization, Aman mentioned that funds were backed by his maintain physical colored diamond stock, it sounds as if price $25 million. 

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As is the case with many Ponzi and catch-rich-quick schemes, patrons ask to peek a decrease of the earnings and without this, Ponzi schemes are exposed and collapse hasty. Subsequently, Aman allegedly frail investor funds to repay earlier funding “hobby,” and as more patrons joined the pool, the switch of funds down the chain persisted — without any decent profit obtained from diamond purchases. 

When funds ran low and the operator modified into as soon as liable to being exposed, he allegedly created “Reinvestment Contracts” to entice customers to roll over their money into fresh ‘deals’ in yell to purchase Aman time to compare in fresh patrons. 

Nevertheless, this would well even no longer persist with it without end, and US prosecutors affirm that Aman set up Argyle Coin as the Ponzi plot modified into as soon as on the breaking level. Argyle Coin claimed to be a cryptocurrency-mission backed by diamond trading, and as a fresh wave of funding poured into the coffers, most productive a “part of the money got” modified into as soon as frail to make a cryptocurrency token.

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As a change, the DoJ says the extensive majority of the funds were frail to repay patrons from the old Ponzi program, under the names Pure Diamonds Investment Co. (Pure Diamonds) and Eagle Monetary Diamond Crew Inc (Eagle). 

“All over the direction of the Ponzi plot, Aman and his partners light over $25 million from hundreds of patrons,” prosecutors affirm. “Aman allegedly frail the money to catch purported hobby payments to patrons, to pay change bills, to pay commissions to the partners, and to increase his maintain lavish daily life.”

Investor funds were allegedly frail for functions including housing rent, horse purchases, and using lessons.

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In 2019, the Securities and Commerce Commission (SEC) obtained an emergency court docket yell to freeze Argyle Coin’s operations. The US District Court docket for the Southern District of Florida granted a quiz for a short restraining yell and asset freeze while the cryptocurrency organization modified into as soon as investigated. 

Aman is going thru charges of wire fraud, which would perhaps well end result in as much as 20 years within the motivate of bars, moreover to restitution payments. 

Old and related protection

  • 2gether hacked: €1.2m in cryptocurrency stolen, native tokens equipped in alternate
  • IRS offers grants for application to mark privacy-centered cryptocurrency trades
  • Lazarus neighborhood strikes cryptocurrency firm thru LinkedIn job adverts

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