Arizona man pleads guilty to $13 million crypto fraud, faces 15 years in prison

Vincent Anthony Mazzotta Jr., a man from Arizona, has pleaded guilty to fraud and money laundering in a $13 million crypto scheme involving #ponzi . He and his accomplice David Gilbert Saffron defrauded victims from 2017 to 2023 through fake crypto investment companies like Mind Capital and Cloud9Capital.

Sophisticated scheme and "double scam"

Mazzotta and Saffron used fake AI trading bots to promise high returns to investors, but in reality, the money was used to fund luxury purchases such as renting villas, private jets, and hiring bodyguards. More insidiously, these fraudsters also set up a fake organization called the "Federal Crypto Reserve." After losing money in the initial scam, victims were further defrauded by being charged additional fees for fake "investigations" aimed at recovering their lost funds.

Experts warn that this is a very cruel form of double fraud, exploiting the desperation and shame of the victims. Mazzotta is set to be sentenced on December 15 and could face up to 15 years in prison. This case once again highlights the need for caution regarding promises of returns that are "too good to be true" in the crypto market. #scam