Pablo Rodriguez, Co-founder of AirBit Club, Sentenced to 12 Years in Prison
Pablo Rodriguez, the co-founder of the cryptocurrency pyramid scheme AirBit Club, has been sentenced to 12 years in prison after pleading guilty to wire fraud conspiracy charges. Along with his co-conspirators, Rodriguez orchestrated a global scam that deceived investors with false promises of cryptocurrency wealth while using their investments for personal gain.
Judge George B. Daniels at the District Court has also imposed an additional three years of supervised release for Rodriguez following his prison term.
The AirBit Scam
Rodriguez and his partner, Dos Santos, established AirBit Club in 2015 and executed a fraudulent scheme that embezzled over $100 million. They enticed victims to invest in the club by guaranteeing profits in exchange for cash investments in “memberships.” AirBit Club was promoted as a cryptocurrency multilevel marketing club that offered returns from cryptocurrency mining and trading, as well as daily passive returns for members.
To attract investors, Rodriguez and his accomplices organized extravagant expos and presentations worldwide. These events aimed to persuade individuals to purchase AirBit Club memberships. Victims were provided access to an online portal that displayed supposed profits accumulating. However, it was later revealed that no actual cryptocurrency activities took place on behalf of the victims. Instead, the perpetrators used user funds for personal expenses while recruiting more victims through lavish expos.
When victims attempted to withdraw funds from the AirBit Club Online Portal or raised complaints, they encountered excuses, delays, and hidden fees. Some individuals had their accounts closed, and their principal investments were allegedly lost due to a false claim related to the COVID-19 pandemic.
Past Scuffle With the Law
In addition to running the AirBit Club Scheme, Rodriguez and his co-conspirators attempted to conceal their control over the scheme’s proceeds. They accomplished this by having victims purchase memberships with cash and using third-party cryptocurrency brokers. The money was then laundered through various bank accounts, including an attorney trust account managed by Hughes, a California lawyer who was involved in the scheme.
Rodriguez and Dos Santos had previously been sued by the US Securities and Exchange Commission (SEC) for another pyramid scheme called ‘Vizinova.’ They paid $1.7 million in penalties for that case. Hughes, their attorney, aided them in both schemes by removing negative information about them from the internet.
Hot Take: Justice Served for AirBit Club Co-founder
The sentencing of Pablo Rodriguez to 12 years in prison sends a strong message that fraudulent schemes targeting unsuspecting investors will not be tolerated. Rodriguez and his co-conspirators used false promises of cryptocurrency wealth to deceive individuals and misappropriate their investments for personal gain. The global scale of the AirBit Club scam highlights the need for continued vigilance in the cryptocurrency industry to protect investors from such schemes.
By imposing a significant prison term and supervised release, Judge George B. Daniels has demonstrated the severity of these crimes and their impact on victims. This case serves as a warning to others who may consider engaging in similar fraudulent activities.
It is crucial for individuals interested in cryptocurrency investments to conduct thorough research, exercise caution, and be wary of promises that seem too good to be true. By staying informed and vigilant, you can protect yourself from falling victim to scams like the AirBit Club.
By
By
By
By
By