David Carmona, founder of the Icomtech cryptocurrency Ponzi scheme, has been sentenced to over 10 years in prison for defrauding investors with false promises of profits. His scheme targeted working-class people with the lure of financial freedom through cryptocurrency trading and mining, none of which actually took place. Lavish expos were held to entice more victims, while new investors’ funds were used to pay earlier ones.

Icomtech Ponzi Scheme Leader Sentenced to 10 Years in Prison

The U.S. Attorney’s Office, Southern District of New York, announced on Friday that David Carmona, founder of the cryptocurrency Ponzi scheme Icomtech, has been sentenced to 121 months in prison. U.S. District Judge Jennifer L. Rochon imposed the sentence after Carmona defrauded investors through false promises of cryptocurrency-related profits.

U.S. Attorney Damian Williams detailed: “David Carmona masterminded the IcomTech cryptocurrency Ponzi scheme, which preyed upon working-class people by promising them complete financial freedom in exchange for parting with their hard-earned money.” He added:

Carmona claimed that his victims’ money would be invested in cryptocurrency trading and mining, and that profits from those activities would result in victims doubling their money within six months. In reality, Icomtech was doing no such thing. It was all a lie.

Carmona launched Icomtech in 2018, claiming to run a cryptocurrency mining and trading operation. According to prosecutors, “Carmona and the other promoters of Icomtech falsely promised their respective Victims, among other things, that profits from the companies’ cryptocurrency trading and mining would result in guaranteed daily returns on Victims’ investments and doubling their money within six months.”

However, Icomtech never engaged in actual trading or mining, the Attorney’s Office noted. Instead, Carmona and his co-promoters used funds from new investors to pay off earlier victims and further promote the fraudulent scheme. Lavish expos and presentations were held to lure more victims, where Carmona’s team flaunted luxury cars and expensive clothing to maintain the illusion of success.

The scheme eventually collapsed by the end of 2019, leaving victims unable to withdraw funds and holding worthless tokens. Despite ongoing complaints, Icomtech promoters continued to accept investments. The Attorney’s Office continued:

In addition to the prison term, Carmona, 41, of Queens, New York, was sentenced to 3 years of supervised release.

What do you think about the Icomtech Ponzi scheme and the impact it had on its victims? Let us know in the comments section below.