A United States federal judge has actually accepted a last judgment versus Homero Josh Garza, the CEO of the now-defunct cryptocurrency mining company GAW Miners.
Thejudgment, entered upon October 4, comes less than 2 years after the Securities and Exchange Commission (SEC) initially submitted fit versus Garza, GAW Miners and ZenMiner, an associated company. Garza was accused and charged with breaching securities laws through the offering of so-called “Hashlets,” or “virtual miners” which were offered to clients through an internal exchange.
Today’s judgment follows a guilty plea from Garza, offered in July, in an associated criminal case pursued by the U.S. JusticeDepartment Garza plead guilty to a single wire scams charge and deals with sentencing early next year.
Inthe SEC’s civil case, Garza has actually been held liable for $ 9,182,000, a quantity that the court order stated will be “deemed satisfied by the order of restitution that will be entered against him when he is sentenced in the related criminal case.” It follows the company won a default judgment against GAW Miners and ZenMiner for $11million in disgorged earnings and civil charges.
GAWMiners, prior to its collapse, formerly used hosted mining services. It later on moved into the cloud mining service, through which clients can buy hash power created by hardware owned by the miner. But in the case of GAW, the company didn’t in fact have as much hash power as it offered– triggering a severe rebuke from federal district attorneys in their initial grievance from December 2015.
“Though cloaked in technological sophistication and jargon, defendants’ fraud was simple at its core – defendants sold what they did not own, and misrepresented the nature of what they were selling,”they composed at the time.