AirBit Club Ponzi Scheme: Key Individuals Sentenced by US Court

AirBit Club Ponzi Scheme: Key Individuals Sentenced by US Court
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Three Defendants Receive Sentences

The United States District Court for the Southern District of New York has made progress in the sentencing procedure of key individuals involved in the AirBit Club cryptocurrency Ponzi scheme. The office of the US attorney for New York announced on October 3rd that three of the five surviving defendants in the AirBit case, Scott Hughes, Cecilia Millan, and Karina Chairez, have been sentenced. All three had previously pleaded guilty to money laundering and other charges earlier this year.

Schemes Found Guilty of Fraud

The AirBit Club scheme, launched in 2015, lured investors with promises of guaranteed daily returns from crypto mining and trading. However, instead of funding the promoted operations, $100 million of investors' money ended up in the pockets of the founders and promoters of the scheme. Despite early complaints about withdrawal delays and hidden fees, the fraudulent activity continued until 2020.

Sentencing Details

Scott Hughes, an attorney who allegedly laundered around $18 million in AirBit Club fraud proceeds, has been sentenced to 18 months in prison. Cecilia Millan, a senior-level promoter, received a five-year prison sentence, while Karina Chairez, another senior-level promoter, was sentenced to one year and one day in prison.

Expectations for Release

In addition to their prison sentences, all three defendants will also serve a period of supervised release. Hughes will serve three years, while Millan and Chairez will serve three years and three months, respectively, under supervision.

AirBit Club Ponzi Scheme: Key Individuals Sentenced by US Court
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US Attorney's Statement

US attorney Damian Williams emphasized the key role played by Hughes, Millan, and Chairez in perpetuating the AirBit Club pyramid scheme. He stated that the sentences sent a message that anyone involved in facilitating cryptocurrency investment schemes, regardless of their position within the scheme, would face serious consequences.

Co-Founder Sentenced Earlier

In September 2023, AirBit Club co-founder Pablo Rodriguez was sentenced to 12 years in prison. Another co-founder, Dos Santos, who has pleaded guilty to multiple charges, including wire fraud conspiracy and money laundering, is scheduled to be sentenced on October 4th, 2023. Santos is the final defendant to be sentenced out of the total of six defendants behind AirBit Club. One defendant, Jackie Aguilar, who had pleaded guilty earlier this year, passed away before sentencing.

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