$5.6 million Bitcoin scam: Lobbyist Jack Abramoff heads back to prison

Ex-convict, Jack Abramoff who was previously charged for one of the largest lobby scandals in Washington, will return to jail for his role in a Bitcoin scam. Abramoff will become the first person to violate a rule which was reportedly amended because of the previous crimes he committed. 

Abramoff charged for his role in $5.6 million Bitcoin scam

According to a report by the US Department of Justice (DOJ) on Thursday, the 65-year-old lobbyist had pleaded guilty for a lobbying scandal, which happened over 10 years ago. Again, he has agreed to plead guilty for criminal conspiracy and falling to identify with appropriate authorities as a lobbyist, in two different schemes.

At first, the supposed legendary Abramoff did not register as a lobbyist, when an FBI undercover agent hired him. The second scheme was a related Bitcoin scam, which solicited millions of dollars from unsuspecting investors. Together with Marcus Andrade, Abramoff misrepresented a cryptocurrency dubbed AML BitCoin.

Per the report, they convinced investors to believe that their cryptocurrency was meant to address the challenges of money laundering, and anonymity with Bitcoin, which only turned out to be another Bitcoin scam. Publicly, the digital currency project was spearheaded by Andrade, whose initial aim was to garner up to $100 million.

Abramoff likely to face another five years jail term

On the other hand, Abramoff marketed the Bitcoin scam scheme behind the scenes, only with fake claims. According to the prosecutors, Abramoff knowingly presented these false claims in the articles and meetings with potential investors. In the long run, they manage to get about $5.6 million from the project.

Meanwhile, the fund raised was directed to personal usage, as the report claims. The investors were left in horror, as the cryptocurrency had no practical use. Reportedly, the ex-convict lobbyist would be facing another five years jail term.