The judge who previously handled Ripple continues to attract attention
Judge Analisa Torres, who made a significant ruling on XRP that shocked the crypto industry, recently sentenced the mastermind of an $8.4 million Ponzi scheme in the cryptocurrency field to 30 months in prison.
The incident occurred just days after the SEC appealed Torres' decision on the distinction between retail and institutional sales of XRP, helping to redefine how tokens are viewed under U.S. securities law.
Sell "worthless coin" to defraud investors
Defendant Hernandez pleaded guilty in July 2024 to charges of conspiracy to commit fraud via telecommunications after being #SEC investigated since 2022.
Hernandez and accomplices lured investors from 2017 - 2021 with promises that they could double their investment in 6 months through a fraudulent trading and cryptocurrency mining system called Forcount.
When investors realized they had been scammed, Hernandez even led them into other fraudulent projects instead of refunding their money.
"There is evidence that she continued other fraudulent schemes," Judge Torres stated during sentencing.
Devastating impact on victims
Many victims reported they lost their entire retirement savings, and even marriages broke down due to the scam. Others felt particularly vulnerable due to their undocumented immigration status.
"The victims are very scared, many of whom are undocumented immigrants," according to court records quoting the federal prosecutor.
In addition to Hernandez, other individuals involved have also been heavily sentenced:
Juan Tacuri, one of the promoters of the Ponzi scheme, was sentenced to 20 years in prison in October 2024.
Francisley Da Silva, the founder of Forcount, is still being held at #Brazil .
Changing context in the U.S. justice system
This verdict comes at a significant time of change at the Southern District Court of New York (#SDNY ). Chief prosecutor Damian Williams just resigned in December 2024 after leading major cases, including:
Sam Bankman-Fried (founder of FTX)
Ghislaine Maxwell (accomplice of billionaire Jeffrey Epstein)
Rapper Sean "Diddy" Combs (awaiting trial)
Former SEC chair Jay Clayton has been nominated for replacement, signaling a shift in approach to crypto cases in the future.
A warning for crypto investors
This case continues to serve as a warning about cryptocurrency scams. Investors need to be cautious of projects promising unusually high returns and always verify information before participating.
👉 Crypto has opportunities but is also fraught with traps! 🚨
