CEO Of 'PayCoin' Scam Scheme, Sentenced To 21 Month's In Jail.

CEO Of 'PayCoin' Scam Scheme, Sentenced To 21 Month's In Jail.

2018-09-15 | Selina Mathew

CEO Of 'PayCoin' Scam Scheme, Sentenced To 21 Month's In Jail.

According to a recent local news by “Hartford Business,” Garza received the decision following his guilty plea to a wire fraud charge associated with making and marketing a scam coin dubbed PayCoin ‘XPY’.

Instead of serving the firstly twenty years sentence, Garza would be reporting to prison on 4th Jan next year and be confined till 2021, with an extra 3 years of supervised release, together with six months in home detention.

In addition to jail time, the former CEO of GAW Miners is advised to repay a $9.2 Mln restitution to investors, that is the approximate quantity of monetary injury during the 9 months crypto scam.

Founded earlier in 2014, Bloomfield-based GAW Miners was a firm that specialised in producing, supplying and marketing special hardwares for crypto mining. However, as per a lawsuit in 2016, the company was to shut down its operations following the allegations of running a Ponzi investment scheme.

The Ponzi Scheme was introduced in the market via creating a new digital currency named ‘PayCoin’ that was launched back in 2014. The Cryptocurrency was claimed by the company to be based on SHA-256 protocols employing both PoW and  PoS working algorithms.

While GAW Miners had reportedly “guaranteed” investors a $20 floor value for PayCoin, instead the best price for ‘XPY’ till date is valued around $15.90 USD.

However in Aug. too, the alleged former owner of crypto exchange BTC-e Alexander Vinnik was indicted and subjected to a "fake" interrogation by French prosecutors in an exceedingly Greek Court. Following a prolonged legal battle and a number of other tribunal rulings, the Greek Supreme Court eventually dominated to deport Vinnik to Russia.

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