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Guilty plea on white collar crimes involving cryptocurrency

On Behalf of | Mar 26, 2019 | White Collar Crimes |

Investors nationwide, including Michigan, who consider making “no-risk” investments in cryptocurrency projects might be blinded by the promises of high-interest returns and other benefits. ryptocurrency laws are evolving, and many gray areas exist. However, in a case that the U.S. Attorney’s office believes to be the first of its kind nationwide, a cryptopreneur pleaded guilty to white collar crimes in federal court.

According to court documents, the defendant pleaded guilty to defrauding cryptocurrency investors of $4 million. Reportedly, the man marketed his startup by scamming investors with false promises. The defendant admitted that he lied to investors when he offered a guaranteed return of up to 20 percent on their investments, along with a card linked to the Visa brand. However, prosecutors say the startup owner has no ties with the Visa services provider.

Court documents also show that the defendant falsely claimed to have raised $600 million within the first week of the initial coin offering while he raised no more than $4 million. Furthermore, the man apparently failed to inform investors of a previous guilty plea he entered in a state court when he was charged for another internet-related scam. He was indicted on charges of securities and wire fraud, and he could get about 20 years in federal prison after the sentencing hearing that is scheduled for July.

When anyone in Michigan becomes aware of an investigation into his or her activities that might lead to white collar crimes charges, the first best step is to retain the services of an experienced criminal defense attorney immediately. After assessing the circumstances, the lawyer can work on a defense strategy regarding the coming court proceedings. Whatever the chosen approach, the lawyer will provide advocacy for the defendant throughout with an eye on achieving the best possible outcome.