The U.S. District Court for the Southern District of New York recently advanced the sentencing process for the key individual behind the cryptocurrency Ponzi scheme AirBit Club. Among them, lawyer Scott Hughes was sentenced to 18 months in prison for laundering approximately $18 million in AirBit Club fraudulent proceeds; Cecilia Milan, a senior promoter of AirBit Club, was sentenced to five years in prison, and another Senior promoter Karina Serres was sentenced to one year and one day in prison.

Launched in late 2015, AirBit Club is promoted as a “multi-level marketing club” for the cryptocurrency industry. However, instead of funding the promoted crypto business, AirBit put $100 million of investor funds into the pockets of its founders and promoters. Although some users complained about withdrawal delays and hidden fees in early 2016, AirBit Club planned to maintain its fraudulent activity into 2020.

U.S. Attorney Damian Williams said in announcing the verdict that Hughes, Milan and Serres each played a key role in perpetuating the AirBit Club pyramid scheme. Williams stressed: “Today’s sentencing sends a message that anyone who promotes cryptocurrency investment schemes – not just those at the top of the pyramid – will face serious consequences for such crimes.”