Wednesday, June 7, 2017

Creators of Bitcoin Miners Face $12 Million Fine for 'Ponzi Scheme' Scam

   
   
Bitcoin is one of popular Ponzi scheme in the world at the moment and it has made some people very rich as the value of Bitcoin continues increasing. As of today, the value of Bitcoin is 2818.70 US Dollar. You cannsee how much people are currently making from this business but few unscrupulous elements have used it to achieve their evil aims.

However, a lot of scammers are in the business right now scamming unsuspecting investors. Yes, the Bitcoin boom is back, and it's real — a digital currency that has just crossed a new milestone today. An American con man took advantage of this boom in Bitcoin market to run bogus bitcoin mining schemes and earn millions of dollars.

But the bogus schemes ended as the United States Securities and Exchange Commission (SEC) has won a legal battle against two bogus, but now defunct, Bitcoin companies operated by Homero Joshua Garza — GAW Miners and ZenMiner.
Garza is now facing a $12 Million (£9.2 Million) penalty for running the bogus schemes – what lawmakers have certified was a "Ponzi scheme."

According to the SEC, Garza used the "lure of quick riches" in order to get people to invest in the bitcoin mining schemes, which means those who add their computing power to help verify transactions, a practice known as mining, are rewarded with Bitcoins.

Information reveals that Garza's GAW Miners and ZenMiner purported to provide shares in cloud-based Bitcoin mining machinery, but nothing like that was ever built by the operator.

Garza told investors that he had enough computing power to mine a lot of bitcoins on their behalf and share the proceeds, but in reality, he just used cash from new investors to reward earlier joiners, which is nothing but a fraudulent "ponzi" scheme, according to the SEC.

The SEC said: "Most investors paid for a share of computing power that never existed." It also said that about 10,000 investors joined the bogus schemes and handed over $20 Million to Garza.
Few got back their money they invested, but many left without a single penny.

The complaint against the Bitcoin mining schemes was filed on 1 December 2015, and on June 2, the US District of Connecticut federal court sided with the SEC, ordering both GAW Miners and ZenMiner to pay a combined of $10,384,099 in disgorgement and prejudgment interest, along with $1,000,000 in damages.
Both GAW Miners and ZenMiner companies have now been shut down.

However, a ruling is yet to be made on the Bitcoin funds collected by Garza. In 2014, when Garza was running the bogus schemes from his home in Connecticut, 1 BTC was equal to $450, and today it is around $2,800.

So, the $20 Million funds Garza took from the investors today worth around $150 million.
   
   
   
Get Our Hottest Updates via SMS. Kindly SMS FOLLOW WIZYTECHS to 40404. On Any Network. It Is Totally FREE. Download Our Android App From Playstore HERE
 photo advertise_zpsc0xqwzbf.gif
To Submit Your Guest Post Or Sponsored Article, Click HERE For More Info
wizytechs blog-bg
   
   

SHARE THIS

Author:

WizyTechs Is A Top Tech Blog That Provides Affordable Browsing Solutions, Latest Smartphone Reviews, Tweaking Guides, How TOs, Business Tips, Blogging Tricks And Overall Optimization Of Your Phone/PC For Better Performance. Continue Visiting This Blog For Latest Free Browsing Updates. Join Our Social Media Platforms Below

Get Browsing Tips Today From Wizy
Follow us:
facebook twitter gplus pinterest rss

18 comments:

  1. Keep on with Your good job wizy tech

    ReplyDelete
  2. Oga wizy is the bitcoins Here in nigeria

    ReplyDelete
  3. Thanks for educating and informing us on this issue. Some of these stuffs are totally strange to me after falling for MMM.

    ReplyDelete
  4. Oga wizy how is the bitcoins look like

    ReplyDelete
  5. Because i have never heard of it before, this my first time

    ReplyDelete
  6. Thanks wizy, but I have issues with my bitcoin, I have 477297.286bit but I still don't know how to withdrawn it to naira #

    ReplyDelete
    Replies
    1. U can contact/chat me on +23466178864 I will help u to convert ur bitcoin to naira.
      Good luck

      Delete
  7. So scammers do make a lot of money in this scheme ponzi

    ReplyDelete
  8. Thats good for him , let him face the consequence

    ReplyDelete
  9. Thanks wizy, but I have issues with mybitcoin, I have 477297.286bitbut I still don't know how to withdrawn it tonaira #

    ReplyDelete
  10. U can contact/chat me on 23466178864I will help u to convert ur bitcoin to naira.Good luck

    ReplyDelete

PLACE YOUR COMMENTS HERE