US citizen charged with working diamond Ponzi arrangement, cryptocurrency scam

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US citizen charged with working diamond Ponzi arrangement, cryptocurrency scam

US citizen charged with working diamond Ponzi arrangement, cryptocurrency scam

A 51-300 and sixty five days-former US citizen has been charged with working a diamond and cryptocurrency-based mostly Ponzi arrangement.

Prosecutors notify that Jose Angel Aman, from Washington, DC., operated a untrue funding arrangement at some stage in the United States and Canada, luring investors with guarantees of fleet returns in the diamond commerce.

The US Division of Justice (DoJ) stated on Friday that Aman turned into as soon as the operator of a Ponzi arrangement from Could well 2014 to Could well 2019. Together alongside with his companions, Aman allegedly solicited americans to make investments in “diamond contracts,” whereby their money would possibly possibly well be dilapidated to pick out out big, tough, uncut diamonds. 

These diamonds would then be in the reduction of and polished in tell to be resold at a profit. To instill belief in the organization, Aman stated that funds were backed by his receive bodily colored diamond inventory, apparently price $25 million. 

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As is the case with many Ponzi and gather-affluent-fleet schemes, investors quiz to agree with a look at a in the reduction of of the earnings and with out this, Ponzi schemes are uncovered and give arrangement rapid. On account of this truth, Aman allegedly dilapidated investor funds to repay earlier funding “hobby,” and as extra investors joined the pool, the transfer of funds down the chain persevered — with none unswerving profit got from diamond purchases. 

When funds ran low and the operator turned into as soon as in risk of being uncovered, he allegedly created “Reinvestment Contracts” to entice users to roll over their money into contemporary ‘deals’ in tell to pick out out Aman time to enroll contemporary investors. 

Then yet again, this can also now not dangle it up and not using a sign of ending, and US prosecutors protest that Aman disaster up Argyle Coin because the Ponzi arrangement turned into as soon as on the brink. Argyle Coin claimed to be a cryptocurrency-finishing up backed by diamond trading, and as a recent wave of funding poured into the coffers, entirely a “allotment of the money purchased” turned into as soon as dilapidated to operate a cryptocurrency token.

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As a replacement, the DoJ says the extensive majority of the funds were dilapidated to repay investors from the old Ponzi program, below the names Natural Diamonds Investment Co. (Natural Diamonds) and Eagle Monetary Diamond Community Inc (Eagle). 

“All over the direction of the Ponzi arrangement, Aman and his companions gentle over $25 million from tons of of investors,” prosecutors protest. “Aman allegedly dilapidated the money to assemble purported hobby payments to investors, to pay business costs, to pay commissions to the companions, and to enhance his receive lavish standard of living.”

Investor funds were allegedly dilapidated for applications including housing rent, horse purchases, and riding lessons.

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In 2019, the Securities and Alternate Rate (SEC) got an emergency court docket tell to freeze Argyle Coin’s operations. The US District Court for the Southern District of Florida granted a ask for a temporary restraining divulge and asset freeze while the cryptocurrency organization turned into as soon as investigated. 

Aman is facing costs of wire fraud, which would possibly also lead to up to 20 years in the abet of bars, in addition to restitution payments. 

Previous and related protection

  • 2gether hacked: €1.2m in cryptocurrency stolen, native tokens provided in change
  • IRS affords grants for system to hint privateness-centered cryptocurrency trades
  • Lazarus group strikes cryptocurrency firm thru LinkedIn job adverts

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