Key Players in AirBit Club Cryptocurrency Scam Receive Prison Sentences
Summary:
Key individuals involved in the AirBit Club cryptocurrency scam have been sentenced by the U.S. District Court for the Southern District of New York. Scott Hughes, Cecilia Millan, and Karina Chairez pleaded guilty to money laundering among other charges associated with the Ponzi scheme and were sentenced to several years in prison. Launched in 2015, the AirBit Club duped investors with the promise of crypto mining and trading returns, only to channel $100 million into the pockets of its promoters and founders. U.S. Attorney Damian Williams warned that the sentences should serve as a warning against cryptocurrency scams. This follows the sentencing of AirBit Club co-founder Pablo Rodriguez, who received a 12-year prison term. Dos Santos, another co-founder awaiting sentencing, pleaded guilty to charges including wire fraud conspiracy and money laundering.
The sentencing proceedings for key players in the AirBit Club, a notorious cryptocurrency scam, are moving forward in the United States District Court for the Southern District of New York. Three out of the five remaining defendants have been sentenced on Oct. 3, as reported by the office of the U.S. Attorney for New York. Scott Hughes, Cecilia Millan, and Karina Chairez received their sentences quite a few months post their admission of guilt for crimes that include money laundering linked to the AirBit case, in the early part of 2023.
Hughes, a lawyer purported to have washed around $18 million originating from the illicit proceeds of AirBit Club, received an 18-month sentence. Millan and Chairez, both high-ranking promoters of the scam, were awarded prison time of five years and one year & one day respectively. Alongside their sentences, Hughes, Millan and Chairez were given three, three and three months of supervised release respectively.
The AirBit Club con was initiated in the later part of 2015, selling itself as a 'multi-level marketing club' within the cryptocurrency sector. The accused fooled investors with attractive pitch decks, promising guaranteed returns from trading and mining of cryptocurrency. However, $100 million of the investor capital didn’t fund the crypto operations as projected but instead enriched the founders and promoters of the club. The scam continued its operations till 2020, despite reports of withdrawal issues and hidden charges emerging as early as 2016.
Commenting on the sentencing, U.S. Attorney Damian Williams highlighted the significant role of Hughes, Millan, and Chairez in the perpetuation of the fraudulent pyramid scheme of AirBit Club. Williams noted that Millan and Chairez, being top promoters, defrauded naive and hardworking investors for their personal gains. The sentences delivered today would serve as a stern warning to those participating in similar illicit cryptocurrency activities.
This sentencing follows the earlier penalty given to Pablo Rodriguez, a co-founder of AirBit Club, who received a 12-year prison term in late September 2023. Another co-founder, Dos Santos, who admitted to charges such as wire fraud conspiracy and money laundering, awaits the announcement of his sentence scheduled for Oct. 4, 2023.
Santos will be the final figure to be sentenced out of the total six involved in the AirBit Club crimes. Another guilty individual, Jackie Aguilar, died in May, only a few weeks before the sentencing after pleading guilty in February 2023.
Published At
10/4/2023 8:36:35 AM
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