Homero Joshua Garza, the CEO of the now-defunct U.S. crypto firm GAW Miners, has been condemned to 21 months in jail for cheating investors, local news organization Hartford Business reports Thursday, September 13.
Garza got the verdict in the Hartford federal court, following his guilty request to a wire fraud charge identified with making and selling a scamcoin named PayCoin (XPY).
Rather than serving the first 20-year sentence, Garza will answer to jail on January 4, 2019, and be imprisoned until 2021, with an extra three years of supervised release, incorporating a half year in home detention.
Notwithstanding jail time, the previous CEO of GAW Miners should reimburse a $9.2 million in compensation to investors, which is the appropriate amount of financial harm created by the nine-month crypto scam.
Established in 2014, Bloomfield-based GAW Miners was a firm were experts in manufacturing, providing and offering uncommon hardware for crypto mining. The organization was closed down in 2015 after claims of working as a Ponzi scheme, which was followed by a lawsuit in 2016.
Made by GAW Miner’s engineers, the PayCoin cloud mining cryptocurrency was launched in 2014. The digital currency depended on the SHA-256 calculation and both proof-of-work (PoW) and proof of-stake (PoS) protocols.
While GAW Miners had purportedly ensured investors a $ 20-floor price for PayCoin, the most astounding XPY price was $15.92 rather, as indicated by CoinMarketCap.
In late August, the charged previous proprietor of crypto trade BTC-e Alexander Vinnik was indicted and subjected to a “fake” interrogation by French prosecutors in a Greek Court. Following an extended fight in court and a few lower court decisions, the Greek Supreme Court eventually voted to remove Vinnik to Russia.