David Brend and Gustavo Rodriguez, the central figures of the cryptocurrency Ponzi scheme Icomtech, have been sentenced to 10 and 8 years in prison respectively for defrauding thousands of investors.
Icomtech falsely marketed itself as a cryptocurrency trading and mining company, promising guaranteed daily returns. Victims were lured by fake activities and promises of profit and invested through online portals that showed fake profits. The funds were then misappropriated to purchase luxury goods, real estate and further promote the scheme. As complaints mounted, Icomtech launched a worthless proprietary token, exacerbating victims' losses until the scheme collapsed in 2019.
U.S. Attorney Damian Williams described Brend as the face of the fraudulent enterprise and Rodriguez as its architect. Both face additional restitution and forfeiture orders. (Bitcoin.com)