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US Courtroom Sentences ICO Fraudster to six Months in Jail: Orders the Accused to Pay Over $4 Million in Restitution


A U.S. courtroom has sentenced Jerry Ji Guo, a resident of San Francisco, to an efficient six months in jail for his position in a fraudulent preliminary coin providing (ICO). Along with the jail time period, the courtroom ordered Guo to pay over $4 million in restitution. Additional, Guo may also cooperate with the federal government within the identification and return of the stolen property.

Embezzlement of Shopper Funds

In an announcement, the US Division of Justice (DOJ) says Guo, who pleaded responsible on August 26, 2019, had offered himself “as an ICO advisor and promised his shoppers he would carry out advertising and marketing and publicity providers.” Nonetheless, as a substitute of fulfilling his guarantees, Guo “embezzled the shoppers’ money and cryptocurrency.”

As courtroom paperwork present, a U.S. grand jury initially indicted Guo on November 15, 2018, charging him with “eight counts of wire fraud, in violation of 18 U.S.C. § 1343.” Nonetheless, the assertion says Guo solely pleaded responsible to 1 rely whereas the remainder of the costs have been dismissed.

Sufferer Compensation

In the meantime, in his remarks, the US Legal professional David L. Anderson, means that the nation’s regulation enforcement has now caught up with crypto criminals. He says:

Some criminals imagine mistakenly that cryptocurrency is past the attain of regulation enforcement. This case reveals we will use felony forfeiture to compensate fraud victims even when cryptocurrency is used within the fraud.

In response to the DOJ assertion, after Guo’s indictment, the federal government went on to acquire a “stipulated utility for a preliminary order of forfeiture” on November 14, 2019. Additional, the federal government additionally obtained warrants to grab the stolen money and cryptocurrency whereas a “last order of forfeiture towards the stolen property” was obtained on February 26, 2020.

Within the meantime, the DOJ assertion goes on to say that the Cash Laundering and Asset Restoration Part, a part of the DOJ’s Felony Division “will use the sufferer restoration course of to return stolen property to victims.”

Do you assume the DOJ will take pleasure in comparable success in different ICO fraud instances? Inform us what you assume within the feedback part under.