US Sentences Man to 3 Years in Prison for Defrauding Investors in Crypto Mining Scheme

A U.S. territory justice has sentenced a antheral to 3 years successful situation successful a fraudulent cryptocurrency mining scheme. The suspect “misappropriated his victims’ wealth and failed to supply them with the miners and miner-hosting services they had purchased from him,” according to the U.S. Department of Justice (DOJ).

Man Sentenced to Prison for Defrauding Investors successful Crypto Mining Scheme

The U.S. Department of Justice (DOJ) announced Thursday that Chester (Chet) Stojanovich has been sentenced to 3 years successful situation “for defrauding purchasers of cryptocurrency miners and miner-hosting services.” He pled blameworthy successful November past twelvemonth to 1 number of ligament fraud.

The DOJ explained that from astatine slightest 2019 until his apprehension successful April 2022, Stojanovich “allegedly defrauded much than a twelve victims of much than $2 cardinal done fraudulent misrepresentations that helium would supply his customers with specialized cryptocurrency-mining computers (‘miners’) and miner-hosting services that would supply the victims with a lucrative watercourse of ‘hash power’ convertible into cryptocurrency.” The Justice Department added:

Instead, Stojanovich misappropriated his victims’ wealth and failed to supply them with the miners and miner-hosting services they had purchased from him.

Besides failing to supply the buyers with the cryptocurrency mining instrumentality and the hosting services they had bought, the DOJ said Stojanovich “employed deceptive practices to make the illusion that specified miners had been acquired and were being utilized to supply hash powerfulness to those customers.”

Moreover, Stojanovich allegedly “misappropriated his customers’ funds and spent the funds connected unrelated and idiosyncratic expenditures, including chartered aerial flights, edifice rooms, limousines, and backstage parties,” the Department of Justice detailed. Noting that Stojanovich was sentenced connected Thursday earlier U.S. District Judge Denise Cote, the DOJ concluded:

In summation to his situation sentence, Stojanovich … was sentenced contiguous to 3 years of supervised release, forfeiture of $2,158,927, and restitution to his victims successful the magnitude of $2,108,927.

Do you deliberation Stojanovich should spell to situation for much than 3 years for defrauding investors successful this crypto mining scheme? Let america cognize successful the comments conception below.

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