- Airbit Club, a supposed cryptocurrency and mining investment vehicle, has been exposed as a scam by the Department of Justice
- The founders and operators have been accused of laundering $20 million of investors’ money
- Airbit Club was nothing more than a pyramid scheme, with investors rewarded for bringing in new members
The founders and operators of Airbit Club have been charged by the Department of Justice (DoJ) with fraud and money laundering. Airbit Club, which advertised itself as a cryptocurrency mining and trading platform, laundered some $20 million according to the charges, with the accused allegedly operating a pyramid scheme that solicited investments and prevented withdrawals, with the operators instead spending investors’ money on themselves.
Airbit Club Was “Fraud and Money Laundering Ring”
Airbit Club, which began back in 2015, was touted as a “multi level marketing club” based on cryptocurrency mining and trading, when in fact it was operating as a pyramid scheme, according to the DoJ charges. Victims were sold packages and were rewarded for recruiting others into the operation in typical pyramid scheme fashion, ensuring a steady flow of money was coming into the company – money that the accused allegedly used to enrich themselves, spending it on cars, jewelry, and luxury homes.
Pablo Renato Rodriguez, Gutemberg Dos Santos, Scott Hughes, Cecilia Millan, and Jackie Aguilar have all been indicted for their roles in the “internationally coordinated fraud and money laundering ring”, with wire fraud conspiracy and money laundering conspiracy charges levelled at the defendants.
Guaranteed Returns…Not
The DoJ alleges that investors were induced to invest in AirBit Club based on the promise of guaranteed profits in exchange for cash investments into the “AirBit Club Scheme”. The scheme falsely promised returns on cryptocurrency mining and trading, offering investors passive, guaranteed daily returns, a typical trait of any cryptocurrency investment scam.
No cryptocurrency mining or trading ever took place, according to the DoJ, and when investors tried to withdraw their ‘profits’ they were met with “excuses, delays, and hidden fees amounting to more than 50% of the Victim’s requested withdrawal”. Instead, the complaint alleges, the defendants were using the money to fund their own lavish lifestyles.
If found guilty, the Airbit Club founders and operators face up to 50 years in prison.
