US citizen charged with working diamond Ponzi map, cryptocurrency scam

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US citizen charged with working diamond Ponzi map, cryptocurrency scam

US citizen charged with working diamond Ponzi map, cryptocurrency scam

A 51-365 days-used US citizen has been charged with working a diamond and cryptocurrency-essentially essentially based Ponzi map.

Prosecutors claim that Jose Angel Aman, from Washington, DC., operated a counterfeit funding map at some stage within the US and Canada, luring merchants with guarantees of lickety-split returns within the diamond change.

The US Division of Justice (DoJ) stated on Friday that Aman changed into once the operator of a Ponzi map from Might perchance per chance additionally 2014 to Might perchance per chance additionally 2019. Along with his companions, Aman allegedly solicited other folks to put money into “diamond contracts,” in which their money could be aged to do away with great, rough, uncut diamonds. 

These diamonds would then be minimize and polished in sigh to be resold at a income. To instill belief within the group, Aman stated that funds had been backed by his gain physical coloured diamond stock, curiously charge $25 million. 

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As is the case with many Ponzi and obtain-rich-lickety-split schemes, merchants count on to discover a minimize of the earnings and with out this, Ponzi schemes are exposed and give diagram rapid. Therefore, Aman allegedly aged investor funds to repay earlier funding “hobby,” and as more merchants joined the pool, the transfer of funds down the chain persisted — with out any real income bought from diamond purchases. 

When funds ran low and the operator changed into once susceptible to being exposed, he allegedly created “Reinvestment Contracts” to entice customers to roll over their cash into new ‘deals’ in sigh to do away with Aman time to mark in new merchants. 

However, this also can now not follow it forever, and US prosecutors snarl that Aman dwelling up Argyle Coin as the Ponzi map changed into once on the verge of give diagram. Argyle Coin claimed to be a cryptocurrency-mission backed by diamond shopping and selling, and as a new wave of funding poured into the coffers, fully a “portion of the money obtained” changed into once aged to make a cryptocurrency token.

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As a alternative, the DoJ says the bulk of the funds had been aged to repay merchants from the old Ponzi program, below the names Pure Diamonds Investment Co. (Pure Diamonds) and Eagle Monetary Diamond Neighborhood Inc (Eagle). 

“One day of the direction of the Ponzi map, Aman and his companions level-headed over $25 million from so much of of merchants,” prosecutors snarl. “Aman allegedly aged the money to acquire purported hobby funds to merchants, to pay change charges, to pay commissions to the companions, and to help his gain lavish standard of living.”

Investor funds had been allegedly aged for capabilities including housing hire, horse purchases, and driving classes.

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In 2019, the Securities and Substitute Commission (SEC) bought an emergency court sigh to freeze Argyle Coin’s operations. The US District Courtroom for the Southern District of Florida granted a request for a momentary restraining sigh and asset freeze while the cryptocurrency group changed into once investigated. 

Aman is facing charges of wire fraud, which also can result in up to 20 years behind bars, as well to restitution funds. 

Outdated and connected protection

  • 2gether hacked: €1.2m in cryptocurrency stolen, native tokens supplied in switch
  • IRS supplies grants for machine to set aside privacy-targeted cryptocurrency trades
  • Lazarus neighborhood strikes cryptocurrency company thru LinkedIn job adverts

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