Crypto Scam Leader Gets 10 Years in Prison

David Carmona, the founder of the Ponzi scheme IcomTech, has been sentenced to 10 years in prison by a US court for his role in defrauding investors through a crypto scam. This ruling was announced on October 4 by the US Attorney’s Office for the Southern District of New York.

IcomTech, launched in 2018, was falsely presented as a crypto mining and trading firm, promising high returns and double profits in six months. Victims were sold fake investment products through various payment methods, including cash, transfers, and cryptocurrencies. The scheme lured investors by showcasing guaranteed daily returns.

Investors were given access to an online portal to monitor their supposed gains, but when they tried to withdraw profits, they faced delays, hidden fees, and blocked transactions. To address complaints, IcomTech began distributing its own “Icom” coins as compensation, claiming they would increase in value. However, these coins proved worthless, and the platform collapsed.

Authorities uncovered that Carmona and his co-conspirators had diverted the invested funds for luxury lifestyles and to lure more victims through extravagant promotions. After being indicted in December 2022, Carmona pleaded guilty to conspiracy to commit wire fraud.

Judge Jennifer L. Rochon sentenced Carmona to 121 months in prison, followed by three years of supervised release. The US Attorney for the Southern District of New York, Damian Williams, emphasized that Carmona’s scamming days are over and welcomed the court's decision. Meanwhile, Marco Ruiz Ochoa, the former CEO of IcomTech, received a five-year sentence earlier this year for his role in the scheme. The IcomTech case highlights the risks associated with crypto investments, especially those promising unrealistic returns.