David Carmona, the mastermind behind the fraudulent IcomTech Ponzi scheme, has been sentenced to 10 years in prison by a US court for deceiving investors in a cryptocurrency scam. This decision was revealed on October 4 by the US Attorney’s Office for the Southern District of New York.
IcomTech, which began operations in 2018, falsely marketed itself as a cryptocurrency mining and trading company, enticing investors with promises of high returns and the potential to double their investments within six months.
The scheme involved selling fake investment products and accepting various payment methods, including cash and crypto, while assuring investors of guaranteed daily profits.
Victims were provided access to an online platform to track their supposed earnings. Still, when they attempted to withdraw their funds, they encountered numerous obstacles, such as delays, hidden fees, and blocked transactions.
In an effort to pacify complaints, IcomTech began issuing its own “Icom” coins, claiming they would appreciate in value, but these coins ultimately turned out to be worthless, leading to the platform’s downfall.
Investigations revealed that Carmona and his associates misappropriated the invested funds to fund lavish lifestyles and attract more victims through extravagant marketing. After being indicted in December 2022, Carmona pleaded guilty to conspiracy to commit wire fraud.
Judge Jennifer L. Rochon sentenced him to 121 months in prison, followed by three years of supervised release.
