A San Francisco man is heading to jail after a U.S. court docket sentenced him for conducting a multi-million-dollar cryptocurrency fraud, in keeping with a Division of Justice (DOJ) press release on Tuesday.
Jerry Ji Guo, 33, was handed a six-month sentence by U.S. District Choose Beth Labson Freeman and ordered to pay practically $4.4 million in restitution after he had pleaded responsible to preliminary coin providing (ICO) fraud.
Throughout the peak of the ICO craze in 2018, Guo represented himself to shoppers as an ICO guide, providing to carry out advertising and consultancy providers on behalf of cryptocurrency startups.
As a substitute of performing his duties as promised, Guo embezzled shoppers’ money and cryptocurrency. He was indicted by a Federal Grand Jury for the crime in November 2018.
The San Francisco man pleaded responsible to 1 rely of wire fraud in August 2019. He had been charged on an extra seven counts however the extra fees had been dismissed. Guo was probably on the hook for 20 years in jail if he was discovered responsible of all fees, the Day by day Beast reported on the time.
In 2019, the U.S. authorities obtained a stipulated software for a preliminary order of forfeiture and likewise obtained warrants to grab Guo’s shopper’s funds. Per a last order of forfeiture, and with the help of Guo, the U.S. authorities is now able to revive stolen property to victims.
The present worth of the stolen money and cryptocurrency is estimated to be over $20 million, in keeping with the DOJ.
“This case exhibits we will use felony forfeiture to compensate fraud victims even when cryptocurrency is used within the fraud,” stated U.S. Lawyer David Anderson.
Guo has additionally been ordered by Choose Freeman to serve a three-year interval of supervision by authorities upon his launch from jail.