DOJ Indicts Two in $25 Million AI Crypto-Trading Ponzi Scheme
The US Department of Justice (DOJ) has filed charges against two individuals for their alleged involvement in a $25 million cryptocurrency Ponzi scheme that utilized artificial intelligence (AI) trading programs. According to the announcement, David Gilbert Saffron, an Australian citizen, and Vincent Anthony Mazzotta Jr., a resident of Los Angeles, operated trading programs that falsely claimed to use an AI-powered trading bot to generate high profits from cryptocurrency investments. Instead, the defendants reportedly used the funds for personal luxuries such as private jet flights, luxury hotels, and staff. The pair is also accused of concealing victims' investments through interchain swaps and the use of cryptocurrency mixers. The defendants face multiple charges, including wire fraud, money laundering, and obstruction of justice. This comes as the DOJ has increased efforts to ensure compliance within the cryptocurrency sector, with a particular focus on cryptocurrencies mixers.