After years of complex investigations, the Department of Justice (DOJ) has announced that seven individuals associated with AirBit Club have pleaded guilty to participating in what the DOJ describes as a “multiyear ... Ponzi scheme.”
The AirBit Club, which was started by a team of Venezuelan and Mexican promoters in 2017, was initially presented as a “cryptocurrency education platform.”
Federal prosecutors claim the AirBit Club used online marketing and videos to solicit investments from the public, particularly from Spanish-speaking countries like Venezuela.
The DOJ alleges the AirBit Club's executives and promoters then took the investments and used them to buy luxury items, pay personal expenses, and “otherwise line their own pockets.”
DOJ Acting US Attorney Kenneth Blanco stated, "Investment fraud schemes, such as the Ponzi scheme alleged in this matter, damage our nation’s financial markets by eroding the confidence of investors.”
All seven AirBit Club execs have pleaded guilty and agreed to forfeiture of the proceeds from their ill-gotten gains.
Key Points:
- Seven executives of AirBit Club pleaded guilty to fraud in their roles in a multiyear venture the Department of Justice claims was a crypto 'Ponzi scheme.'
- AirBit Club used online marketing and videos to solicit investments from the public, particularly from Spanish-speaking countries.
- Prosecutors allege AirBit Club execs took investments and used them to buy luxury items, pay personal expenses, and “otherwise line their own pockets.”
- All seven AirBit Club execs have pleaded guilty and agreed to forfeiture of ill-gotten gains.
tl;dr:
Seven executives of AirBit Club have been found guilty of fraud involving a multiyear crypto 'Ponzi scheme'. The investments were used to buy luxury items and line the pockets of the executives. All seven have pleaded guilty and agreed to the forfeiture of their ill-gotten gains.