Controversial cryptocurrency executive Josh Garza has plead guilty to one count of wire fraud.
As reported by CoinDesk earlier this week, Garza was reported to have actually been preparing the plea, one for charges that originate from his operation of 4 cryptocurrency business, GAW, GAW Miners, ZenMiner and ZenCloud, all which were long suspected of fraudulent activities.
Inoverall, the loss associated to Garza’s fraud was approximated at $9,182,000 He is now set to be sentenced on October 12, at which time he will deal with up to 20 years in jail.
Still, that isn’t really most likely to be the last of the case versus the executive, one understood for participating in conferences with body guards and other strange stunts that triggered neighborhood alarm.
A different case versus Garza for securities fraud, brought by the SEC, is still continuous, with the firm still collecting proof until this August That case might still be settled from court.
But while unassociated, today’s filing discussed the specifics of that case, with the phrasing singling out the business’s sale of mining devices and explaining its operations in a way comparable to a Ponzi plan.
The U.S. Department of Justice notice, for example, worried that Garza’s business defrauded customers by consistently making incorrect claims about how their items run, and the state of their organisation transactions.
GAW’s organisation collapsed in 2015 and is not functional.