A San Francisco man is heading to jail after a U.S. court docket sentenced him for conducting a multi-million greenback 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 almost $4.4 million in restitution after he had pleaded responsible to preliminary coin providing (ICO) fraud.
Through the top of the ICO craze in 2018, Guo represented himself to purchasers as an ICO guide, providing to carry out advertising and marketing and consultancy companies on behalf of cryptocurrency startups.
As a substitute of performing his duties as promised, Guo embezzled purchasers’ 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 additional seven counts however the extra fees have been dismissed. Guo was doubtlessly 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 utility for a preliminary order of forfeiture and likewise obtained warrants to grab Guo’s shopper’s funds. Per a ultimate 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 reveals we are able to use legal forfeiture to compensate fraud victims even when cryptocurrency is used within the fraud,” mentioned 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.