The man behind multi million crypto fraud has been caught

Californian man ordered to return defrauded crypto
  • A 33-year-old man from San Francisco is sentenced to six months imprisonment for crypto fraud
  • The man has accepted that he embezzled the funds his clients
  • The lawbreaker will now help the law enforcement to identify the victims and return their funds
  • The case proved that digital currencies are not beyond the reach of the law enforcement bodies

Crypto fraud, money laundering, and hacks are significant issues in the cryptosphere, resulting in many forms. Recently in an official release from the United States Department of Justice (DOJ), it is revealed that a man has been jailed for crypto fraud. Jerry Ji Guo, a resident of San Francisco, has been sentenced to six months in jail for defrauding investors with more than $20 million. The judge ruled on Thursday by the US Attorney Office of the Northern District of California. 

Crypto fraud criminal has been jailed for six months

Jerry Ji Guo, aged 33 years, has been sentenced to six months of imprisonment for crypto fraud. Guo was charged back on August 26, 2019, for the fraudulent activities. Guo accepted himself as an initial coin offering (ICO) consultant and promised his clients and promised his victims to perform marketing and publicity services. Instead of providing such services, Guo embezzled the funds of the clients. However, it is known that Guo is ordered to pay $4,392,636.14 as restitution sentenced to three years supervised release.

Guo has cooperated with law enforcement

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Back in November 2019, the government gained a stipulated application for a preliminary order of forfeiture. The government received the warrant to seize the illicit funds last year. Following this, the government is now able to return the illegal funds to the scam victims. In addition to pleading, Guo has also revealed that he cooperated with the government. He helps the government to identify and return the victim’s property through the forfeiture process.

Cryptocurrencies are not beyond the reach of laws

Some evil actors in the crypto world think that law can never trace crypto fraud. In the release, US Attorney David Anderson stated that such lawbreakers believe that cryptocurrency is beyond law enforcement’s reach. However, the recent case has concluded that the enforcements can use criminal forfeiture to compensate fraud victims, even when virtual currencies have been used in the activity. 

Simultaneously, the South African Financial Sector Conduct Authority (FSCA) is observed seeking greater regulatory power over virtual currencies after the Mirror trading International (MTI) collapsed. According to Brandon Topham, the head of enforcement at FSCA, when the fraud became a Ponzi scheme, the authority lost its jurisdiction. Indeed, the Ponzi scheme is one of the most extensive Ponzi strategies in the country.

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Ritika Sharma
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.

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