The founders of the multi-million scam are guilty.

David Brand and Gustavo Rodriguez were convicted of fraud for their involvement in a crypt Ponzi scheme called IcomTech.

This case highlights the dangerous nature of fraudulent crypto investments.

How does IcomTech work?

In the year Launched in 2018, IcomTech is marketed as a crypto mining and trading company. The mastermind behind the crypto Ponzi operation hired David Carmona Rodriguez to develop the website.

Consequently, they promise high returns to investors, leading many into a financial trap. But these investment products have become part of a huge scam.

Additionally, the brand and its affiliates have hosted major events to attract investments. They displayed luxury and success by misleading investors about the legitimacy of the firm. The scammers carefully created this façade to disguise the fact that they were not running a real business.

Investors who were lured by the prospect of profits faced a harsh reality. The findings displayed on the IcomTech portal were virtual. The capital invested by many was lost, instead enriching the promoters of the scheme.

“Ecomtech defrauded tens of thousands of people out of tens of millions of dollars,” US Attorney Damian Williams said, promising easy riches based on supposed cryptocurrency investments, but defrauding workers of their hard-earned money.

Read More: Top Cryptocurrency Scams of 2024

To further the idea, IcomTech introduced “Icoms”, tokens that are said to be valuable in the future. This move only prolonged the inevitable collapse and caused investors to suffer huge financial losses.

The conviction echoes the case of Bitcoin Fog co-founder Roman Sterlinov. Sterlilov was found guilty of money laundering through the service, which hid the origin of illegal Bitcoin.

The Sterlilov operation, which involved illegal transactions worth nearly $400 million, shows the dark side of crypto. According to Brand and Rodriguez, the conviction warns of potential problems for the crypto industry.

These legal actions show the need for caution in the cryptocurrency market. They emphasize the need for strong regulatory measures to prevent such fraudulent activities. Of course, investors must be vigilant, and the legal system must continue to crack down on fraudsters who exploit this new financial frontier.