Two people were found guilty of promoting the IcomTech cryptocurrency pyramid
Clients saw an increase in funds through their personal account, but they could not withdraw them from the platform.
A New York jury has found two former promoters of the IcomTech cryptocurrency pyramid guilty of conspiracy to use electronic means of fraud. This is reported by the US Department of Justice.
According to the case file, Gustavo Rodriguez has been creating a website for IcomTech since mid-2018, which positioned itself as a mining and trading company. David Brand, along with the founders of the project, attracted customers, guaranteeing daily profits.
In reality, IcomTech worked on the principle of a Ponzi scheme, paying dividends from deposits of new users. Most of the funds were used to buy real estate, travel and conduct "luxury presentations".
Clients saw an increase in funds through their personal account, but they could not withdraw them from the platform.
As complaints grew, IcomTech introduced the native Icoms token, however, this only resulted in additional losses.
By the end of 2019, the pyramid collapsed.
According to the prosecutor's office, in total, "tens of thousands of people with tens of millions of dollars in damage" suffered from IcomTech's activities.
The final verdict for Brand and Rodriguez will be handed down on June 27 and 28, respectively. They face up to 20 years in prison.
