$BTC
A figure in the world of cryptocurrencies admits to fraud
The U.S. Department of Justice accuses Thomas John Safraga of convincing a victim to invest in a "fake" cryptocurrency "wallet"
After promises of significant returns.
Thomas John Safraga, a figure in the world of cryptocurrencies, pleaded guilty to a wire fraud charge
After misleading more than a dozen victims into investing in nonexistent projects, including fraudulent cryptocurrency schemes.
Safraga convinced a victim to invest
In a "fake" cryptocurrency wallet. The agency clarified that Safraga has expertise in the podcasting world
And the cryptocurrency industry, including presenting cryptocurrency events in New York.
"Promised victims returns on their investments of up to 60% in three months," the Department of Justice added.
However, it appears he was running a Ponzi scheme, where the returns paid to earlier investors
Were not from legitimate profits but from the investments of new participants.
In fact, Safraga transferred the funds for his personal benefit, to pay expenses, and to pay previous victims and business partners,” it clarified. Among these victims were a number of Safraga's friends and neighbors, whom he betrayed their trust to "collect over $1.3 million from their hard-earned savings."