A federal court in California has ordered five members of the IcomTech team to pay more than $5 million in damages and fines.
This decision comes after it was proven that they defrauded investors of $8.4 million during the period from 2018 to 2019.
IcomTech markets itself as a cryptocurrency platform offering daily returns of up to 2.8%, claiming that the funds are used to trade and mine cryptocurrencies via a special token called “Icoms.”
However, the investigation revealed that the funds were used for personal expenses such as luxury goods and vacations, without any evidence of the alleged activities.
David Carmona, the ringleader of the scheme, and his partner David Brind were each sentenced to 10 years in prison, while Marco A. Ruiz Ochoa received a five-year sentence.
Two other defendants, Juan Arellano Parra and Mousa Valdez, were ordered to pay fines and were prohibited from engaging in any activities subject to the CFTC's regulation.
The CFTC began its investigation in 2023 after complaints from investors, asserting that the case represented a common pattern of cryptocurrency fraud based on false promises of huge returns and pyramid marketing strategies.
Although the court has seized more than $1.2 million of the defendants' assets, victims are still not expected to be fully compensated for their losses.
Therefore, we always advise users to be careful and cautious, especially with those projects that promise profitable returns in a short time or permanently and without being exposed to loss.