According to a recent local news by “Hartford Business,” Garza receivedthe decision following his guilty plea to a wire fraud chargeassociated withmakingandmarketinga scam coin dubbed PayCoin ‘XPY’.
Instead of servingthe firstlytwentyyears sentence, Garza would be reporting to prison on4th Jan next year and beconfinedtill2021, withan extra3years ofsupervisedrelease,together withsix months in home detention.
In addition tojailtime,the formerCEOof GAW Miners is advised to repay a $9.2 Mln restitution to investors,thatis theapproximatequantityof monetaryinjury during the 9 months crypto scam.
Founded earlier in2014, Bloomfield-based GAW Miners was a firm thatspecialisedinproducing,supplyingandmarketingspecial 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 floorvaluefor PayCoin, insteadthe bestprice 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 prosecutorsin an exceedinglyGreek Court. Following aprolongedlegal battleand a number of othertribunalrulings, the Greek Supreme Court eventuallydominatedtodeport Vinnik to Russia.