The judicial hammer came down hard on the AirBit Club co-founder.
Pablo Rodriguez, the co-founder of AirBit Club, has been sentenced to 12 years in prison for his role in a cryptocurrency fraud scheme. The scam is said to have defrauded investors out of over $100 million.
On September 26th, the sentencing was unveiled by Damian Williams, United States Attorney for the Southern District of New York. Williams revealed that the sentencing was highly influenced by the fact that Rodriguez pleaded guilty to wire fraud conspiracy charges in a US District Court.
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According to Williams, Rodriguez exploited investors by falsely promising that their funds were being invested in legitimate crypto trading and mining operations. Instead, the money was hidden through a complicated laundering mechanism.
Instead of investing on behalf of investors, Rodriguez hid victims’ money in a complex laundering scheme using Bitcoin, an attorney trust account, and international front and shell companies and used victims’ money to line his own pockets.
Beyond the prison term, Judge George B. Daniels has mandated an additional three years of supervised release for Rodriguez. He is also ordered to forfeit $65 million in ill-gotten gains. The court further ordered the seizure of multiple assets, including 3,800 Bitcoin (BTC), Rodriguez's residence in California, and nearly $1 million previously set aside for purchasing a Gulfstream Jet.
Rodriguez is not the only individual entangled in the legal consequences of this case. Other defendants associated with AirBit Club, such as Dos Santos, Scott Hughes, Cecilia Millan, and Karina Chairez, have also entered guilty pleas and are awaiting their sentencing.
According to a report by blockchain intelligence firm TRM Labs, in 2022, cryptocurrency scams like Ponzi schemes led to a loss of $7.8 billion.
The sentencing of Pablo Rodriguez serves as a cautionary tale for investors and a significant moment in the ongoing efforts to curb cryptocurrency fraud. It highlights the growing vigilance of regulatory bodies and law enforcement agencies in holding scammers accountable.
