U.S. authorities accuse AirBit Club mining Ponzi scheme of fraud and money laundering

Proceeds from the AirBit Club mining fraud project are used to purchase luxury cars, jewelry and real estate, not for Bitcoin mining and transactions. After investigation by the US Department of Homeland Security, the operator based on the global cryptocurrency Ponzi scheme mining was accused of fraud and money laundering.

U.S. authorities accuse AirBit Club mining Ponzi scheme of fraud and money laundering

According to an announcement by the US Department of Justice, the relevant members of the AirBit club were arrested and appeared in court on August 18, while the remaining accomplices were arrested in Panama and are awaiting extradition to the United States.

AirBit is planned to be launched at the end of 2015 and sold as a multi-layer MLM in the cryptocurrency mining investment industry. The defendant allegedly hosted a luxurious speech to encourage investors to take cash and promised to guarantee daily returns from cryptocurrency mining and trading.

In this fraud scheme, investors are induced to invest in AirBit Club, based on the promise of guaranteed profits, in exchange for cash investment in the club’s "membership". Since the end of 2015, AirBit Club has been marketing AirBit Club as a multi-level marketing project in the cryptocurrency industry through its founders Rodriguez and Dos Santos, as well as promoters including Millan and Aguilar. Sales staff make false promises to investment victims to guarantee daily returns.

The fact is that Rodriguez, Dos Santos, Millan, and Aguilar made a fortune, spending the victims' money on cars, jewellery, and luxury homes, and funding extravagant exhibitions to recruit more victims.

Rodriguez, Dos Santos, Hughes, and Millan attempted to launder the proceeds of the program through several domestic and foreign bank accounts, including the lawyer trust account managed by Hughes, to cover up the AirBit Club program. In general, the defendant cleared at least $20 million in fraudulent proceeds.

The crime of telecommunications fraud and money laundering can be sentenced to a maximum of 20 years in prison, and the crime of bank fraud can be sentenced to a maximum of 30 years in prison.

As early as 2016, club members wishing to withdraw money encountered various excuses, delays and hidden fees. According to reports, if they wanted to get rewards, they had to recruit new members.

The defendant also tried to require members to pay membership dues in cash, allegedly laundering at least US$20 million through various trusts and bank accounts, and deleted negative information about the plan from the Internet to cover up the plan and its participants.