Submit Blog Home » Cryptocurrency News » Cryptocurrency News » US Man Charged Over $25M Diamond Ponzi Scheme That Touted a Crypto Token US Man Charged Over $25M Diamond Ponzi Scheme That Touted a Crypto Token September 14, 2020
Sep 14, 2020 at 08:13 UTC Updated Sep 14, 2020 at 08:26 UTC
(Tsikhan Kuprevich/Getty Images)
A man from Washington, D.C., has been charged with running a diamond investment scam with its own cryptocurrency to fund a life of luxury.Federal prosecutors in South Florida charged the man, Jose Angel Aman, with wire fraud on Friday.Allegations include that Aman and his partners had solicited investors in the U.S.and Canada for a diamond investment scheme saying he would buy rough colored diamonds and cut, polish and resell them for profit.Promoting the investment as high return and no risk, Aman said the scheme was backed by a $25 million inventory of diamonds, according to the allegations.However, the prosecutors claim Aman “rarely” used investments to buy rough diamonds and never refined and resold them; the $25 million inventory was also an alleged falsehood.Aman instead made supposed interest payments to earlier investors using newer investors’ money and persuaded investors to roll over their investments by falsely claiming their investments were at full value.
Prosecutors allege that, when the scheme, was approaching collapse, Aman launched a purported diamond-back cryptocurrency called Argyle Coin and further solicited investors.
Again, money from earlier investors was allegedly used to play “interest” to earlier investors.The schemes fleeced “hundreds” of investors for over $25 million, according to the charges, while Aman allegedly used some of the funds to “support his own lavish lifestyle.” Aman made his initial court appearance in West Palm Beach, Florida, last week.Back in May, the U.S.Securities and Exchange Commission moved to halt the operations of Aman, Argyle coin and other entities he operated over similar allegations.Share this: UK Government Says It Will Update Crypto Tax Guidance By Early Next Year UK officials have outlined a range of regulatory steps around cryptoassets and distributed ledger technology (DLT) in a new report.The UK government’s “Cryptoasset Taskforce,” first announced this past March, published its final report on Monday, finding that the technology that makes up cryptocurrencies can be used to benefit the financial services sector, as well as other… Bitcoin Price Charts Hint at Recovery Rally Above $6.4K Bitcoin (BTC) could witness a minor corrective rally if the bulls’ persistent defense of key support leads to a break above the resistance at $6,400, technical charts indicate.The leading cryptocurrency suffered a downside break of the symmetrical triangle in the early U.S.session yesterday, signaling a revival of the sell-off from the recent highs… Zaif Crypto Exchange Reveals Takeover In New Hack Refund Plan Tech Bureau, the firm behind the Japanese crypto exchange Zaif, has revealed a drastic new plan to compensate users after a major hack last month.
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