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US Court Sentences ICO Fraudster to 6 Months in Jail: Orders the Accused to Pay Over $4 Million in Restitution

US Court Sentences ICO Fraudster to 6 Months in Jail: Orders the Accused to Pay Over $4 Million in Restitution

A U.S. courtroom has sentenced Jerry Ji Guo, a resident of San Francisco, to an efficient six months in jail for his position in a fraudulent preliminary coin providing (ICO). In addition to the jail time period, the courtroom ordered Guo to pay over $Four million in restitution. Further, Guo may even cooperate with the federal government within the identification and return of the stolen property.

Embezzlement of Client Funds

In an announcement, the United States Department of Justice (DOJ) says Guo, who pleaded responsible on August 26, 2019, had offered himself “as an ICO guide and promised his purchasers he would carry out advertising and publicity companies.” However, as an alternative of fulfilling his guarantees, Guo “embezzled the purchasers’ money and cryptocurrency.”

As courtroom paperwork present, a U.S. grand jury initially indicted Guo on November 15, 2018, charging him with “eight counts of wire fraud, in violation of 18 U.S.C. § 1343.” However, the assertion says Guo solely pleaded responsible to 1 depend whereas the remainder of the fees have been dismissed.

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Victim Compensation

Meanwhile, in his remarks, the United States Attorney David L. Anderson, means that the nation’s legislation enforcement has now caught up with crypto criminals. He says:

Some criminals imagine mistakenly that cryptocurrency is past the attain of legislation enforcement. This case exhibits we will use felony forfeiture to compensate fraud victims even when cryptocurrency is used within the fraud.

According to the DOJ assertion, after Guo’s indictment, the federal government went on to acquire a “stipulated utility for a preliminary order of forfeiture” on November 14, 2019. Further, the federal government additionally obtained warrants to grab the stolen money and cryptocurrency whereas a “ultimate order of forfeiture in opposition to the stolen property” was obtained on February 26, 2020.

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In the meantime, the DOJ assertion goes on to say that the Money Laundering and Asset Recovery Section, a part of the DOJ’s Criminal Division “will use the sufferer restoration course of to return stolen property to victims.”

Do you assume the DOJ will get pleasure from comparable success in different ICO fraud instances? Tell us what you assume within the feedback part under.

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