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Four IcomTech executives have been ordered to pay a staggering $5 million as punishment for their role in running a crypto scam that defrauded over 190 individuals out of more than $1 million. According to court documents, the executives misused most of the funds instead of investing them into the promised crypto mining and trading project.
The scammers, who were found guilty of violating the U.S. Commodity Exchange Act and other regulations set by the country’s commodities watchdog, CFTC, will each pay $1 million as part of their punishment.
In addition to the hefty fine, the five executives have been prohibited from interacting with any CFTC-regulated products or seeking to be registered by the commodities regulator in the future.
Three of the five individuals involved have already been sentenced to prison terms ranging from 5 to 10 years for their roles in running the Ponzi scheme. Gustavo Rodriguez, one of the executives, was given an eight-year sentence in November, while David Carmona, the company’s founder, received a 10-year sentence in October.
The CFTC had previously charged IcomTech operators with fraud back in May 2023, and more recently, former CEO Marco Ruiz admitted to operating a Ponzi scheme in September 2023.
It is unclear at this point how much of the stolen funds will be recovered and returned to the victims, but the court’s decision serves as another reminder that regulators are cracking down on malicious actors in the crypto space.
The CFTC has recently ordered an Oregon man to pay $209 million for operating a Ponzi scheme, marking yet another instance where perpetrators have been held accountable for their actions.
Source: fullycrypto.com
