A senior promoter and also a resident of Mexico in the IcomTech crypto Ponzi has been sentenced to 6 years behind bars

According to a statement from the U.S. Attorney’s Office for the Southern District of New York, Magdaleno Mendoza has been handed a prison sentence for his role in helping orchestrate the multimillion-dollar Ponzi scheme that targeted working-class Spanish-speaking investors.

The main problem is that Mendoza allegedly exploited the trust of victims by promising guaranteed daily returns from cryptocurrency trading and mining, but in reality they stole millions while using investor funds to enrich himself and fellow promoters.

As a senior promoter of IcomTech, Mendoza helped prey on Spanish-speaking victims who lacked investment experience, including fellow New Yorkers,” said U.S. Attorney Jay Clayton.

IcomTech advertised itself as a cryptocurrency mining and trading firm that operated between mid-2018 and late 2019. The platform promised daily investment returns in cash, along with access to an online portal where users could supposedly track profits.

However, authorities say the company was never engaged in real trading or mining. Instead, it operated as a multilevel marketing Ponzi scheme that recycled money from new investors to pay returns to earlier ones in order to maintain the illusion of legitimacy.