US citizen charged with working diamond Ponzi plot, cryptocurrency scam

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US citizen charged with working diamond Ponzi plot, cryptocurrency scam

US citizen charged with working diamond Ponzi plot, cryptocurrency scam

A 51-300 and sixty five days-extinct US citizen has been charged with working a diamond and cryptocurrency-essentially essentially based Ponzi plot.

Prosecutors claim that Jose Angel Aman, from Washington, DC., operated a flawed investment plot all the diagram in which thru the US and Canada, luring investors with guarantees of hasty returns in the diamond commerce.

The US Division of Justice (DoJ) talked about on Friday that Aman used to be the operator of a Ponzi plot from Would possibly perhaps possible well additionally 2014 to Would possibly perhaps possible well additionally 2019. Collectively along with his companions, Aman allegedly solicited other folks to spend money on “diamond contracts,” by which their money may well perhaps be frail to consume gargantuan, rough, uncut diamonds. 

These diamonds would then be decrease and polished in affirm to be resold at a earnings. To instill believe in the organization, Aman talked about that funds were backed by his have bodily coloured diamond stock, it appears price $25 million. 

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As is the case with many Ponzi and receive-successfully to avoid wasting-hasty schemes, investors request to seem a decrease of the profits and without this, Ponzi schemes are uncovered and crumple instant. Attributable to this truth, Aman allegedly frail investor funds to repay earlier investment “hobby,” and as more investors joined the pool, the switch of funds down the chain continued — without any legitimate earnings purchased from diamond purchases. 

When funds ran low and the operator used to be liable to being uncovered, he allegedly created “Reinvestment Contracts” to entice customers to roll over their money into contemporary ‘deals’ in affirm to consume Aman time to enroll in contemporary investors. 

Then again, this is in a position to perhaps perhaps also no longer stick with it forever, and US prosecutors narrate that Aman space up Argyle Coin because the Ponzi plot used to be on the verge of crumple. Argyle Coin claimed to be a cryptocurrency-mission backed by diamond buying and selling, and as a contemporary wave of investment poured into the coffers, handiest a “piece of the money purchased” used to be frail to avoid wasting a cryptocurrency token.

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As an replace, the DoJ says the majority of the funds were frail to repay investors from the old Ponzi program, below the names Pure Diamonds Investment Co. (Pure Diamonds) and Eagle Monetary Diamond Neighborhood Inc (Eagle). 

“For the length of the course of the Ponzi plot, Aman and his companions serene over $25 million from quite quite a bit of of investors,” prosecutors narrate. “Aman allegedly frail the money to avoid wasting purported hobby payments to investors, to pay enterprise costs, to pay commissions to the companions, and to make stronger his have lavish standard of living.”

Investor funds were allegedly frail for capabilities including housing rent, horse purchases, and riding classes.

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In 2019, the Securities and Alternate Commission (SEC) purchased an emergency court affirm to freeze Argyle Coin’s operations. The US District Court for the Southern District of Florida granted a save a query to for a non eternal restraining affirm and asset freeze whereas the cryptocurrency organization used to be investigated. 

Aman is facing charges of wire fraud, which may well perhaps also consequence in as a lot as 20 years behind bars, besides restitution payments. 

Earlier and linked coverage

  • 2gether hacked: €1.2m in cryptocurrency stolen, native tokens equipped in commerce
  • IRS affords grants for instrument to hint privacy-focused cryptocurrency trades
  • Lazarus team strikes cryptocurrency firm thru LinkedIn job adverts

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