Judge Charges a Man with Defrauding Investors

Ponzi scheme is known to absolutely all crypto participants and many experts warn users against scammers and fraudsters who would try to cheat them and involve in various illegal activities. Cybercriminals do not seem to give up on their tricks and invent new ways to deceive people.

As a rule, fraudsters work in groups and the latest event proves this fact. Investigators have found out that one of four men was charged with defrauding investors. All of them have been pleaded guilty. The cybercriminal employed a well-known crypto mining scheme to receive seven hundred and twenty-two million USD. 

Analysts have found out more details about the individual who has been charged. According to the information resources, the cybercriminal is 35 years old. The man comes from Romania and works as a programmer. Bacali was found and arrested in Germany at the end of 2019.

The judge charged him with one count of conspiracy. He committed wire fraud. Also, he used the scheme as an instrument to offer and sell securities that were not registered. Now the cybercriminal faces a maximum of five years in jail. Additionally, he has to pay a fine of two hundred and fifty thousand USD.

https://www.justice.gov/usao-nj/press-release/file/1225306/download

Officials state that the group consisted of four fraudsters. Goettsche, Medlin, and Frank Abel were also charged in connection with the mentioned scheme in the USA a couple of weeks ago.

Investors Become Victims

According to the latest police reports, the scheme solicited huge funds from investors. In turn, they had to exchange them for shares in certain cryptocurrencies mining pools. More than that, investing individuals received rewards and bonuses for bringing more investors and joining them in the network.

Officers also reveal the correspondence between the cybercriminals. There, they discussed the ways they would use to fake mining earnings. In their messages, they referred to their victims as ‘sheep’. There were instances when the criminals offered participants the alternative of investing in various mining pools.

All of them were separate and the group admitted that they were unaware that BitClub Network was responsible for operating more than one pool. Further texting between Bacali and the other fraudsters revealed that his buddies asked him to increase the daily earnings by sixty percent. Bacali objected to that plan and said it would feel unsustainable.

Nevertheless, the criminal was charged and accused of changing information and figures. This is how he misled investors. More than that, he confirmed officials’ allegation that their applied scheme helped them to fleece at least seven hundred and twenty-two million USD from investors.

Experts and crypto specialists never quit warning people against such events. They inform and teach all participants to pay attention to early signs. We all should remember that criminals can launch a malleability attack. Crypto media news decided to flag this sort of scheme four years ago.

As we can see, the number of scams, fraud, and various attacks do not stop bothering the crypto community. Participants should always stay alert and cautious while dealing with people they hardly know.