US citizen charged with working diamond Ponzi plan, cryptocurrency scam

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US citizen charged with working diamond Ponzi plan, cryptocurrency scam

US citizen charged with working diamond Ponzi plan, cryptocurrency scam

A 51-year-former US citizen has been charged with working a diamond and cryptocurrency-based mostly Ponzi plan.

Prosecutors claim that Jose Angel Aman, from Washington, DC., operated a mistaken funding plan across the United States and Canada, luring traders with guarantees of like a flash returns within the diamond alternate.

The US Division of Justice (DoJ) acknowledged on Friday that Aman modified into once the operator of a Ponzi plan from Can also honest 2014 to Can also honest 2019. Together along with his companions, Aman allegedly solicited contributors to make investments in “diamond contracts,” in which their money would be veteran to assign mountainous, rough, uncut diamonds. 

These diamonds would then be minimize and polished so that you might well be resold at a profit. To instill trust within the group, Aman acknowledged that funds receive been backed by his receive bodily coloured diamond inventory, interestingly value $25 million. 

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As is the case with many Ponzi and get-correctly off-like a flash schemes, traders set a matter to to peep a minimize of the income and with out this, Ponzi schemes are exposed and give intention like a flash. Which skill that fact, Aman allegedly veteran investor funds to pay off earlier funding “ardour,” and as more traders joined the pool, the transfer of funds down the chain persevered — with none legit profit obtained from diamond purchases. 

When funds ran low and the operator modified into once in difficulty of being exposed, he allegedly created “Reinvestment Contracts” to entice customers to roll over their cash into fresh ‘deals’ so that you can assign Aman time to test in fresh traders. 

Nonetheless, this would per chance well now now not follow it with out extinguish, and US prosecutors command that Aman region up Argyle Coin as the Ponzi plan modified into once on the brink. Argyle Coin claimed to be a cryptocurrency-mission backed by diamond trading, and as a fresh wave of funding poured into the coffers, most productive a “a part of the money got” modified into once veteran to create a cryptocurrency token.

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In its set, the DoJ says the majority of the funds receive been veteran to pay off traders from the previous Ponzi program, below the names Natural Diamonds Funding Co. (Natural Diamonds) and Eagle Monetary Diamond Community Inc (Eagle). 

“At some stage at some level of the Ponzi plan, Aman and his companions silent over $25 million from a entire bunch of traders,” prosecutors command. “Aman allegedly veteran the money to originate purported ardour payments to traders, to pay enterprise charges, to pay commissions to the companions, and to enhance his receive lavish intention of life.”

Investor funds receive been allegedly veteran for functions including housing rent, horse purchases, and riding lessons.

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In 2019, the Securities and Alternate Commission (SEC) obtained an emergency court explain to freeze Argyle Coin’s operations. The US District Court for the Southern District of Florida granted a matter for a non permanent restraining explain and asset freeze while the cryptocurrency group modified into once investigated. 

Aman is facing prices of wire fraud, which might well result in as a lot as 20 years within the help of bars, as correctly as restitution payments. 

Earlier and linked protection

  • 2gether hacked: €1.2m in cryptocurrency stolen, native tokens supplied in switch
  • IRS gives grants for instrument to impress privacy-centered cryptocurrency trades
  • Lazarus neighborhood strikes cryptocurrency firm by LinkedIn job adverts

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