Cryptocurrency Ponzi Scheme IcomTech's Senior Marketing Associate Sentenced to Nearly Six Years in Prison

BlockBeats News, December 19th, the U.S. Department of Justice announced on December 19th that Magdaleno Mendoza, a senior promoter of the cryptocurrency Ponzi scheme IcomTech, aged 56, was sentenced to 71 months in prison for his participation in this large-scale fraud targeting investors across the United States.

U.S. Attorney Jay Clayton of the Southern District of New York stated that Mendoza played a key role in recruiting victims, especially within the Spanish-speaking blue-collar community. "As a senior promoter of IcomTech, Mendoza helped target Spanish-speaking users lacking investment experience, including our fellow New Yorkers. He and his cohorts took advantage of the victims' trust, siphoning off millions of hard-earned dollars from the blue-collar community."

IcomTech was established in mid-2018, claiming to be a cryptocurrency mining and trading company that promised investors guaranteed profits upon depositing funds. However, according to the U.S. Department of Justice's statement, the company never engaged in the promised trading or mining activities; instead, it used new investors' funds to pay early participants and fund the promoters' lavish lifestyles.