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DOJ frames charges against AirBit Club crypto scam founders

DOJ frames charges against AirBit Club crypto scam founders

The U.S. Department of Justice has announced fraud charges against AirBit club crypto scam. The multi-million dollar Ponzi scheme took cash from investors and promised high crypto returns. Instead, the scamsters spent the finances lavishly on an expensive lifestyle.

The filing mentioned that fraud charges are framed against five operators involved in the Ponzi operation. They lured gullible investors by promising them assured returns under the guise of cryptocurrency trading operations.

AirBit Club crypto scam founders lived a lavish lifestyle

The DOJ mentions how the perpetrators operated a multi-level marketing operation that defrauded many U.S. citizens. AirBit Club crypto scam operators include Pablo Renato Rodriguez, Dos Santos, Scott Hughes, Cecilia Millan, and Jackie Aguilar.

AirBit Club used an age-old money-spinning scheme to scam the investors. They assured high returns from phoney trading in cryptocurrencies. In another complaint, AirBit Club promoter Margarita Cabrerra has been charged for unlawful unregistered securities sale of AirBit Club securities.

Crypto scams still carry same Modus Operandi

Founded in 2015, AirBit used many high-profile promoters to attract investors. Millan and Aguilar laid emphasis on Spanish-speaking clients through various social channels. Exaggerated everyday returns were assured to the investors. Victims were shown inflated account statements when, in reality, there were no profits. Withdrawal attempts resulted in delays and rejections.

Meanwhile, the scamsters spent millions of dollars of investor money on luxury lifestyle. International trips and extravagant promotional events were all sponsored by investor money.

As per a May 2019 news, AirBit Club crypto scam was also investigated by Brazilian agencies. AirBit Club crypto scam founders have laundered approximately $20 million via numerous local and international transactions. Earlier, Rodriguez and Dos Santos had a face-off with the U.S. Securities and Exchange Commission involving a pyramid scheme operation.

Gurpreet Thind

Gurpreet Thind

Gurpreet Thind is pursuing Masters in Electrical Engineering at University of Ottawa. His scholarly interests include IT, computer languages and cryptocurrencies. With a special interest in blockchain powered architectures, he seeks to explore the societal impact of digital currencies as finance of the future. He is passionate about learning new languages, cultures and social media.

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