US Man Sentenced to Prison for Embezzling $20M of ICO Investors’ Funds

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A San Francisco man is heading to prison after a UNITED STATE court sentenced him for carrying out a multi-million-dollar cryptocurrency scams, according to a Department of Justice (DOJ) press release on Tuesday.

Jerry Ji Guo, 33, was handed a six-month sentence by UNITED STATE District Judge Beth Labson Freeman and also bought to pay virtually $4.4 million in restitution after he had actually begged guilty to preliminary coin offering (ICO) scams.

During the elevation of the ICO fad in 2018, Guo represented himself to customers as an ICO specialist, offering to do advertising and also working as a consultant solutions on part of cryptocurrency start-ups.

Instead of executing his tasks as assured, Guo embezzled customers’ money and also cryptocurrency. He was prosecuted by a Federal Grand Jury for the criminal activity in November 2018.

The San Francisco man begged guilty to one matter of cable scams in August 2019. He had actually been billed on a more 7 matters yet the surcharges were rejected. Guo was possibly responsible for twenty years behind bars if he was condemned of all fees, the Daily Beast reported at the time.

In 2019, the UNITED STATE federal government got a stated application for an initial order of forfeit as well as likewise gotten warrants to take Guo’s customer’s funds. Per a last order of forfeit, and also with the support of Guo, the UNITED STATE federal government is currently in a setting to recover taken building to sufferers.

The existing worth of the taken money and also cryptocurrency is approximated to more than $20 million, according to the DOJ.

“This case shows we can use criminal forfeiture to compensate fraud victims even when cryptocurrency is used in the fraud,” claimed UNITED STATE Attorney David Anderson.

Guo has actually likewise been bought by Judge Freeman to offer a three-year duration of guidance by authorities upon his launch from prison.