PayCoin Crypto Crime Case Ends With Jail Sentence for GAW CEO
Josh Garza, former CEO of GAW Miners, has been sentenced to 21 months of imprisonment by U.S. District Judge Robert N. Chatigny in Hartford, after pleading guilty to a wire fraud charge in April.
33-year-old Josh Garza received a 21-months prison sentence for his role in a Ponzi scheme based around the issuance of a cryptocurrency – called PayCoin. And a fine to pay $9 million in restitution, he will further face a six-month home confinement and three years of supervised release.
Garza ran Gaw Miners, a cryptocurrency mining company that sold “hashlets” to investors. Under the company’s plan, individuals could buy the rights to profits generated by Gaw Miner’s crypto mining operation.
However, the entire setup was a lie. The company never had the actual computing power that they promised investors.
The court initially set a maximum prison sentence cap of 20 years for Garza in July last year – but Judge Robert Chatigny reduced it on account of the convict’s agreement – and a subsequent procession – of repaying customers $9.2 million in recovery.
The hearing saw attendance from several GAW Miners victimized customers who stood witness against Garza’s malicious schemes under oath. Mousetrapped, Garza expressed remorse for his actions and gave himself to the mercy of the law – after denying the charges for more than three years.
Get Bitzamp Latest Update By Downloading our Mobile App: Bitzamp – Cryptocurrency News – Apps on Google Play