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US Sentences Man to three Years in Jail for Defrauding Buyers in Crypto Mining Scheme – Bitcoin Information


A U.S. district decide has sentenced a person to 3 years in jail in a fraudulent cryptocurrency mining scheme. The defendant “misappropriated his victims’ cash and failed to offer them with the miners and miner-hosting providers that they had bought from him,” in response to the U.S. Division of Justice (DOJ).

Man Sentenced to Jail for Defrauding Buyers in Crypto Mining Scheme

The U.S. Division of Justice (DOJ) introduced Thursday that Chester (Chet) Stojanovich has been sentenced to 3 years in jail “for defrauding purchasers of cryptocurrency miners and miner-hosting providers.” He pled responsible in November final yr to at least one rely of wire fraud.

The DOJ defined that from not less than 2019 till his arrest in April 2022, Stojanovich “allegedly defrauded greater than a dozen victims of greater than $2 million by way of fraudulent misrepresentations that he would supply his prospects with specialised cryptocurrency-mining computer systems (‘miners’) and miner-hosting providers that would supply the victims with a profitable stream of ‘hash energy’ convertible into cryptocurrency.” The Justice Division added:

As a substitute, Stojanovich misappropriated his victims’ cash and failed to offer them with the miners and miner-hosting providers that they had bought from him.

Apart from failing to offer the patrons with the cryptocurrency mining tools and the internet hosting providers that they had purchased, the DOJ mentioned Stojanovich “employed misleading practices to create the phantasm that such miners had been acquired and had been getting used to offer hash energy to these prospects.”

Furthermore, Stojanovich allegedly “misappropriated his prospects’ funds and spent the funds on unrelated and private expenditures, together with chartered air flights, resort rooms, limousines, and personal events,” the Division of Justice detailed. Noting that Stojanovich was sentenced on Thursday earlier than U.S. District Decide Denise Cote, the DOJ concluded:

Along with his jail sentence, Stojanovich … was sentenced at present to 3 years of supervised launch, forfeiture of $2,158,927, and restitution to his victims within the quantity of $2,108,927.

Do you assume Stojanovich ought to go to jail for greater than three years for defrauding buyers on this crypto mining scheme? Tell us within the feedback part under.

Kevin Helms

A scholar of Austrian Economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His pursuits lie in Bitcoin safety, open-source techniques, community results and the intersection between economics and cryptography.

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