A US judge recently sentenced Stojanovich to 3 years in prison in a fraud crypto mining scheme. According to the US DOJ, Stojanovich misappropriated his victim’s money and failed to provide them with the miners and miner hosting services they had purchased from him. Recently, the frequency of money laundering scams has rapidly increased, especially in the crypto sector.
US judge sentenced a man to prison for defrauding investors
Last Thursday, the US DOJ announced that Chester Stojanovich had been sentenced to three years in prison for defrauding investors in a crypto mining scheme. 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 USD through fraudulent misrepresentations that he would provide his customers with specialised crypto mining computer and miner hosting services that would allow the victim to get a lucrative stream of hash power convertible into crypto. The department added that instead, Stojanovich misappropriated his victim’s money and failed to provide them with all the services he guaranteed.
Besides failing to provide the buyers with the crypto 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 the buyers with hash power.
Stojanovich used the customer’s money for personal expenditures.
As you know, a US judge sentenced Stojanovich to 3 years in prison in a fraud crypto mining scheme. Stojanovich failed to provide the customers with the crypto mining equipment and hosting services he promised, used customer funds misappropriated and spent many of them on unrelated and personal expenditures. It includes hotel rooms, private parties, air flights and limousines, the DOJ detailed.
The US DOJ concluded by saying that in addition to his prison sentence, Stojanovich was sentenced today to three years of supervised release, forfeiture of 2,158,927 USD and restitution to his victims in the amount of 2,108,927 USD. The department is mainly trying to help the victims get their money back.
What are your thoughts on the Stojanovich fraud crypto mining scheme? Do you think three years of imprisonment is enough for Stojanovich for defrauding investors in this crypto-mining scam? Let us know in the comments below. And if you found our content informative, share it with your family and friends.