US Sentences Man to 3 Years in Prison for Defrauding Investors in Crypto Mining Scheme

US Sentences Man to 3 Years in Prison for Defrauding Investors in Crypto Mining Scheme

A U.S. district judge has sentenced a man to three years in prison in a fraudulent cryptocurrency mining scheme. The defendant “misappropriated his victims’ money and failed to provide them with the miners and miner-hosting services they had purchased from him,” according to the U.S. Department of Justice (DOJ). Man Sentenced to Prison for Defrauding Investors in Crypto Mining Scheme

The U.S. Department of Justice (DOJ) announced Thursday that Chester (Chet) Stojanovich has been sentenced to three years in prison “for defrauding purchasers of cryptocurrency miners and miner-hosting services.” He pled guilty in November last year to one count of wire fraud.

The DOJ explained that from at least 2019 until his arrest in April 2022, Stojanovich “allegedly defrauded more than a dozen victims of more than $2 million through fraudulent misrepresentations that he would provide his customers with specialized cryptocurrency-mining computers (‘miners’) and miner-hosting services that would provide the victims with a lucrative stream of ‘hash power’ convertible into cryptocurrency.” The Justice Department added: Instead, Stojanovich misappropriated his victims’ money and failed to provide them with the miners and miner-hosting services they had purchased from him.

Besides failing to provide the buyers with the cryptocurrency mining equipment and the hosting services they had bought, the DOJ said Stojanovich “employed deceptive practices to create the illusion that such miners had been acquired and were being used to provide hash power to those customers.”

Moreover, Stojanovich allegedly “misappropriated his customers’ funds and spent the funds on unrelated and personal expenditures, including chartered air flights, hotel rooms, limousines, and private parties,” the Department of Justice detailed. Noting that Stojanovich was sentenced on Thursday before U.S. District Judge Denise Cote, the DOJ concluded: In addition to his prison sentence, Stojanovich … was sentenced today to three years of supervised release, forfeiture of $2,158,927, and restitution to his victims in the amount of $2,108,927. Tags in this story crypto miners, crypto mining, crypto mining fraud, crypto mining prison, cryptocurrency mining, DOJ, fraudulent crypto mining scheme, miner hosting services, prison sentence crypto mining, US Judge

Do you think Stojanovich should go to prison for more than three years for defrauding investors in this crypto mining scheme? Let us know in the comments section below. Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Bitcoin Miners Brace for Another Projected Difficulty Increase as Hashrate Heats Up Amid Market Uncertainty MINING | 14 hours ago Investment Fund Focused on Crypto Mining to Be Created in Russia MINING | 3 days ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleRipple CEO Warns of Harm to Crypto Industry if SEC Wins Lawsuit Over XRP Next articlePakistan Banks to Use Blockchain Technology for KYC Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItArgentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments

The National Securities Commission (CNV), which is the Argentinian securities watchdog, recently launched an innovation hub with the goal of advancing conversations about cryptocurrency and fintech investments. This organization will serve as a link between private entities and the institution, ... read more.Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Iran to Increase Penalties for Unauthorized Cryptocurrency Mining