David Carmona, the founder of the fraudulent cryptocurrency scheme IcomTech, has been sentenced to 10 years in prison for conspiracy to commit wire fraud. Carmona orchestrated a Ponzi scheme that targeted everyday working people, promising financial freedom through crypto trading and mining activities. Investors were told their money would double every six months, but these promises were false, according to U.S. Attorney Damian Williams.

IcomTech ran from mid-2018 to late 2019, netting an estimated $8.4 million from victims. Carmona and his team lured investors by hosting extravagant events, where they flaunted expensive cars and luxury clothing to portray wealth and success. They used this image to convince investors they could achieve similar financial gains.

However, the promised returns never materialized. Victims were unable to withdraw their so-called profits, often facing delays, hidden fees, and excuses from the IcomTech team. As complaints grew, IcomTech introduced a token called "Icoms," falsely claiming it would be accepted by businesses for payments. These tokens were worthless, leading to further financial losses when the scheme collapsed in 2019.

Carmona pleaded guilty in December 2023. Along with his 121-month prison sentence, he will serve three years of supervised release. Other key figures in the scheme, including former CEO Marco Ruiz Ochoa and promoters David Brend and Gustavo Rodriguez, have also faced legal consequences for their roles in defrauding investors.

Join our newsletter today to receive daily value-packed web3 intelligence reports, blending LLM systems with human intelligence. Free users enjoy a lite version, while paid subscribers get full access. Check it out for free.