US citizen charged with running diamond Ponzi plot, cryptocurrency scam

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US citizen charged with running diamond Ponzi plot, cryptocurrency scam

US citizen charged with running diamond Ponzi plot, cryptocurrency scam

A 51-year-outmoded US citizen has been charged with running a diamond and cryptocurrency-essentially based Ponzi plot.

Prosecutors claim that Jose Angel Aman, from Washington, DC., operated a false funding plot across the United States and Canada, luring investors with promises of rapid returns within the diamond trade.

The US Department of Justice (DoJ) said on Friday that Aman turn out to be the operator of a Ponzi plot from Would perchance 2014 to Would perchance 2019. Collectively along with his companions, Aman allegedly solicited folks to invest in “diamond contracts,” thru which their money would perchance perchance well be fashioned to dangle clean, tough, uncut diamonds. 

These diamonds would then be sever and polished in advise to be resold at a earnings. To instill belief within the organization, Aman said that funds had been backed by his have bodily colored diamond stock, curiously price $25 million. 

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As is the case with many Ponzi and catch-rich-rapid schemes, investors question to explore a sever of the profits and with out this, Ponzi schemes are uncovered and collapse rapid. Therefore, Aman allegedly fashioned investor funds to pay off earlier funding “hobby,” and as more investors joined the pool, the switch of funds down the chain continued — with none legitimate earnings got from diamond purchases. 

When funds ran low and the operator turn out to be at threat of being uncovered, he allegedly created “Reinvestment Contracts” to entice users to roll over their money into recent ‘deals’ in advise to dangle Aman time to register recent investors. 

On the opposite hand, this can even no longer persist with it with out discontinuance, and US prosecutors order that Aman predicament up Argyle Coin as the Ponzi plot turn out to be on the breaking point. Argyle Coin claimed to be a cryptocurrency-conducting backed by diamond procuring and selling, and as a new wave of funding poured into the coffers, simplest a “piece of the money received” turn out to be fashioned to catch a cryptocurrency token.

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As a change, the DoJ says the bulk of the funds had been fashioned to pay off investors from the outdated Ponzi program, under the names Pure Diamonds Funding Co. (Pure Diamonds) and Eagle Financial Diamond Neighborhood Inc (Eagle). 

“Throughout the direction of the Ponzi plot, Aman and his companions clean over $25 million from hundreds of investors,” prosecutors order. “Aman allegedly fashioned the money to produce purported hobby payments to investors, to pay industry bills, to pay commissions to the companions, and to make stronger his have lavish everyday life.”

Investor funds had been allegedly fashioned for applications along with housing hire, horse purchases, and riding lessons.

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In 2019, the Securities and Alternate Price (SEC) got an emergency court advise to freeze Argyle Coin’s operations. The US District Court docket for the Southern District of Florida granted a requirement for a short restraining advise and asset freeze while the cryptocurrency organization turn out to be investigated. 

Aman goes thru prices of wire fraud, which would perchance even consequence in up to 20 years within the assist of bars, as wisely as restitution payments. 

Old and related protection

  • 2gether hacked: €1.2m in cryptocurrency stolen, native tokens provided in alternate
  • IRS supplies grants for machine to price privacy-focused cryptocurrency trades
  • Lazarus group strikes cryptocurrency company thru LinkedIn job adverts

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