Gemcoin founder Steve Chen was sentenced Monday to 10 years in federal jail for defrauding tens of hundreds of traders in one of many largest early cryptocurrency funding schemes.
Chen, 63, admitted final February to working U.S. Fantastic Funding Arts (USFIA) and peddling $147 million in “gem cash” (crypto purportedly backed by gems) to over 70,000 traders from 2013 by way of 2015. Prosecutors have described USFIA as a Ponzi scheme and a multi-level advertising scheme.
His responsible plea on one depend of tax evasion and one depend of conspiracy to commit wire fraud carried a compulsory minimal 10-year sentence. Decide John F. Walter moreover ordered Chen to pay the IRS $1,885,094 in again taxes.
Chen’s sentencing is wrapped up however his case is way from over. The choose scheduled a restitution listening to for July to debate making Chen’s sufferer traders entire.