The U.S. Department of Justice (DOJ) has indicted two individuals for allegedly operating a $25 million artificial intelligence (AI) crypto-trading Ponzi scheme. Australian national David Gilbert Saffron and Los Angeles resident Vincent Anthony Mazzotta Jr. are accused of running trading programs that promised high-yield profits through an AI automated trading bot.
However, instead of investing the victims’ funds in cryptocurrency markets, the defendants allegedly used the money for personal expenses such as private jet flights, luxury hotels, and private security. They also attempted to conceal the victims’ investments through interchain swaps and cryptocurrency mixers.
The scheme operated under various names, including Circle Society, Bitcoin Wealth Management, and Cloud9Capital. Saffron and Mazzotta are facing charges of wire fraud, money laundering, and obstruction of justice.
This indictment comes as the DOJ has been focusing on increasing compliance within the blockchain industry. The department recently revealed its methods for monitoring the compliance of cryptocurrency exchange Binance, following its settlement for money laundering and sanction breaches.
The DOJ’s criminal division will closely monitor Binance’s activities, including sections for money laundering and asset recovery, national security, counterintelligence and export control, and the office for the Western District of Washington’s United States Attorney.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇦🇺 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Vincent Anthony Mazzotta Jr., David Gilbert Saffron |
| Companies | Bitcoin Wealth Management, Cloud9Capital, Omicron Trust, Circle Society, Federal Crypto Reserve, Mind Capital |
| Currencies | None |
| Securities | None |
