US citizen charged with working diamond Ponzi device, cryptocurrency scam

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US citizen charged with working diamond Ponzi device, cryptocurrency scam

US citizen charged with working diamond Ponzi device, cryptocurrency scam

A 51-365 days-faded US citizen has been charged with working a diamond and cryptocurrency-primarily primarily based Ponzi device.

Prosecutors impart that Jose Angel Aman, from Washington, DC., operated a false investment device across the United States and Canada, luring investors with promises of immediate returns in the diamond alternate.

The US Division of Justice (DoJ) stated on Friday that Aman was once the operator of a Ponzi device from Might perchance perchance honest 2014 to Might perchance perchance honest 2019. Together alongside with his partners, Aman allegedly solicited folk to make investments in “diamond contracts,” in which their money may well be prone to keep terminate huge, rough, uncut diamonds. 

These diamonds would then be reduce and polished in give away to be resold at a profit. To instill belief in the group, Aman stated that funds were backed by his possess bodily coloured diamond stock, it sounds as if price $25 million. 

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As is the case with many Ponzi and get-prosperous-immediate schemes, investors question to peep a reduce of the profits and without this, Ponzi schemes are uncovered and crumple immediate. Therefore, Aman allegedly vulnerable investor funds to repay earlier investment “interest,” and as extra investors joined the pool, the transfer of funds down the chain persisted — with none legitimate profit obtained from diamond purchases. 

When funds ran low and the operator was once in chance of being uncovered, he allegedly created “Reinvestment Contracts” to entice users to roll over their money into new ‘deals’ in give away to keep terminate Aman time to verify in new investors. 

On the different hand, this may well now not carry on with out a raze in sight, and US prosecutors express that Aman residing up Argyle Coin because the Ponzi device was once on the verge of crumple. Argyle Coin claimed to be a cryptocurrency-venture backed by diamond trading, and as a new wave of investment poured into the coffers, excellent a “allotment of the money bought” was once prone to possess a cryptocurrency token.

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As an different, the DoJ says the majority of the funds were prone to repay investors from the old Ponzi program, under the names Natural Diamonds Funding Co. (Natural Diamonds) and Eagle Monetary Diamond Community Inc (Eagle). 

“All thru the direction of the Ponzi device, Aman and his partners quiet over $25 million from a lot of of investors,” prosecutors express. “Aman allegedly vulnerable the money to get purported interest payments to investors, to pay business fees, to pay commissions to the partners, and to increase his possess lavish everyday life.”

Investor funds were allegedly vulnerable for capabilities including housing rent, horse purchases, and riding lessons.

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In 2019, the Securities and Replace Commission (SEC) obtained an emergency court give away to freeze Argyle Coin’s operations. The US District Court docket for the Southern District of Florida granted a matter for a transient restraining advise and asset freeze while the cryptocurrency group was once investigated. 

Aman goes thru fees of wire fraud, which may well result in as much as 20 years in the support of bars, in addition to restitution payments. 

Previous and linked coverage

  • 2gether hacked: €1.2m in cryptocurrency stolen, native tokens equipped in substitute
  • IRS gives grants for tool to hint privateness-centered cryptocurrency trades
  • Lazarus community strikes cryptocurrency firm thru LinkedIn job adverts

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