The general director of the GAW Miners cryptocurrency company, Homero Joshua Garza, was convicted on fraud charges. According to Hartford Business, Garza was sentenced to 21 months imprisonment for deceiving investors.
The Federal Court of Hartford charged Garza, based on data on the promotion and distribution of the fraudulent cryptocurrency PayCoin (XPY), launched by GAW Miners.
According to the data, instead of a 20-year prison term, Garza will be taken into custody in January 2019 and will serve up pumped up until 2021. Also, the punishment includes 6 months of house arrest and 3 years of supervisory release.
In addition, the CEO of GAW Miners is obligated to pay compensation to investors for a total of $ 9.2 million. It is in this amount that the damage caused by cryptocurrency fraud is assessed.
GAW Miners was founded in 2014 and was engaged in the production, promotion, and sale of equipment intended for the production of cryptocurrency. After the company’s activities were qualified as a Ponzi scheme, it was closed in 2015. In 2016, a lawsuit was filed against the company.
The company launched its own PayCoin cryptocurrency in 2014. It is reported that the coin was developed based on the SHA-256 algorithm, as well as PoW and PoS protocols. The company promised investors that they can get about $ 20 for each coin, but according to CoinMarketCap, the maximum recorded value of the coin is $ 15.92.
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