US citizen charged with working diamond Ponzi diagram, cryptocurrency rip-off

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US citizen charged with working diamond Ponzi diagram, cryptocurrency rip-off

US citizen charged with working diamond Ponzi diagram, cryptocurrency rip-off

A 51-one year-broken-down US citizen has been charged with working a diamond and cryptocurrency-primarily based Ponzi diagram.

Prosecutors convey that Jose Angel Aman, from Washington, DC., operated a false investment diagram across the US and Canada, luring investors with guarantees of instant returns within the diamond alternate.

The US Division of Justice (DoJ) stated on Friday that Aman became once the operator of a Ponzi diagram from May perhaps well perhaps also honest 2014 to May perhaps well perhaps also honest 2019. Along with his partners, Aman allegedly solicited folk to spend money on “diamond contracts,” in which their money would be mature to procure extensive, rough, uncut diamonds. 

These diamonds would then be within the reduction of and polished in show to be resold at a revenue. To instill believe within the organization, Aman stated that funds had been backed by his beget physical coloured diamond stock, interestingly fee $25 million. 

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As is the case with many Ponzi and find-filthy rich-instant schemes, investors query to scrutinize a within the reduction of of the earnings and with out this, Ponzi schemes are exposed and give way snappily. Subsequently, Aman allegedly mature investor funds to pay off earlier investment “ardour,” and as more investors joined the pool, the switch of funds down the chain continued — with out any legitimate revenue obtained from diamond purchases. 

When funds ran low and the operator became once in pain of being exposed, he allegedly created “Reinvestment Contracts” to entice customers to roll over their money into new ‘deals’ in show to procure Aman time to register new investors. 

On the opposite hand, this would well now not persist with it forever, and US prosecutors pronounce that Aman space up Argyle Coin as the Ponzi diagram became once on the brink. Argyle Coin claimed to be a cryptocurrency-challenge backed by diamond trading, and as a fresh wave of investment poured into the coffers, only a “portion of the money got” became once mature to beget a cryptocurrency token.

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As an replacement, the DoJ says the majority of the funds had been mature to pay off investors from the earlier Ponzi program, below the names Pure Diamonds Funding Co. (Pure Diamonds) and Eagle Monetary Diamond Community Inc (Eagle). 

“For the duration of the course of the Ponzi diagram, Aman and his partners nonetheless over $25 million from a range of of investors,” prosecutors pronounce. “Aman allegedly mature the money to waste purported ardour payments to investors, to pay alternate bills, to pay commissions to the partners, and to toughen his beget lavish way of life.”

Investor funds had been allegedly mature for purposes along side housing rent, horse purchases, and riding classes.

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In 2019, the Securities and Change Commission (SEC) obtained an emergency court show to freeze Argyle Coin’s operations. The US District Court for the Southern District of Florida granted a question for a momentary restraining show and asset freeze while the cryptocurrency organization became once investigated. 

Aman is facing prices of wire fraud, which may perhaps well lead on to up to 20 years within the support of bars, in addition to restitution payments. 

Old and linked protection

  • 2gether hacked: €1.2m in cryptocurrency stolen, native tokens equipped in alternate
  • IRS gives grants for utility to designate privacy-focused cryptocurrency trades
  • Lazarus neighborhood strikes cryptocurrency company via LinkedIn job adverts

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