Homero Joshua Garza, the CEO of the now-defunct U.S. crypto company GAW Miners, has been sentenced to 21 months in prison for defrauding buyers, regional information agency Hartford Business stories Thursday, September 13.
Garza gained the verdict in the Hartford federal court, pursuing his responsible plea to a wire fraud demand relevant to making and promoting a scamcoin dubbed PayCoin (XPY).
Alternatively of serving the primary 20 year sentence, Garza will report to prison on January 4, 2019 and be jailed right up until 2021, with an further 3 decades of supervised launch, such as six months in household detention.
In addition to prison time, the previous CEO of GAW Miners will have to repay a $9.2 million restitution to buyers, which is the approximate total of economical harm wrought by the nine-thirty day period crypto fraud.
Started in 2014, Bloomfield-based mostly GAW Miners was a company that specialised in production, supplying and promoting distinctive hardware for crypto mining. The corporation was shut down in 2015 pursuing allegations of operating as a Ponzi plan, which was adopted by a lawsuit in 2016.
Designed by GAW Miners developers, the PayCoin cloud mining cryptocurrency was introduced in 2014. The electronic currency was based mostly on the SHA-256 algorithm and both of those evidence-of-perform (PoW) and evidence-of-stake (PoS) protocols.
Whilst GAW Miners had reportedly “guaranteed” buyers a $20 flooring value for PayCoin, the greatest XPY value was $15.92 in its place, in accordance to CoinMarketCap.
In late August, the alleged previous proprietor of crypto exchange BTC-e Alexander Vinnik was indicted and subjected to a “faux” interrogation by French prosecutors in a Greek Court. Subsequent a protracted lawful struggle and quite a few lower court rulings, the Greek Supreme Court finally ruled to extradite Vinnik to Russia.