Home / Others / CEO behind GAW Miners Paycoin Ponzi Scheme sentenced to 21 months in prison

CEO behind GAW Miners Paycoin Ponzi Scheme sentenced to 21 months in prison

Homero Joshua Garza, the managing director of the now cryptic US cryptic firm GAW Miners, was sentenced to 21 months in prison for fraud to investors, reports the local news agency Hartford Business on Thursday 13 September [19659002] Garza received the verdict in the Federal Court of Hartford, following his guilty declaration of fraud linked to the creation and sale of a scamcoin nicknamed PayCoin (XPY).

Instead of serving the original 20-year sentence, Garza will report to prison on January 4, 2019 and be imprisoned until 2021, with another three years of supervised release, including six months of home detention.

In addition to holding time, the former CEO of GAW Miners will have to repay a $ 9.2 million return to investors, which is the approximate amount of financial damage caused by the nine-month encryption.

Founded in 2014, Bloomfield's GAW Miners was a company specializing in the production, supply and sale of special hardware for encryption min. ing. The company was closed in 2015 following allegations of operating as a Ponzi scheme, which was followed by a lawsuit in 2016.

Created by the developers of GAW Miners, the cloud mining cryptocurrency PayCoin was launched in 2014. The Digital currency was based on the SHA-256 algorithm and both proof-of-work (PoW) and proof-of-stake (PoS) protocols.

While GAW miners had "guaranteed" investors a price of $ 20 for PayCoin, the highest price of XPY was $ 15.92 instead, according to CoinMarketCap.

At the end of August, the alleged former owner of the encrypted exchange BTC-e Alexander Vinnik was indicted and subjected to a "fake" interrogation by French prosecutors in a Greek court. Following a protracted legal battle and several lower court rulings, the Greek Supreme Court decided to extradite Vinnik to Russia.

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