NY Man Admits Guilt in M Crypto Mining Fraud

NY Man Admits Guilt in $2M Crypto Mining Fraud

A person has pleaded responsible to defrauding clients who purchased cryptocurrency-mining services. 

Chester J. “Chet” Stojanovich pleaded responsible Tuesday (Nov. 29) to wire fraud after telling clients he would offer them with crypto-mining computer systems (“Miners”) and Miner internet hosting providers, however as an alternative holding the cash and never delivering what he promised, the U.S. Lawyer’s Workplace for the Southern District of New York stated Tuesday in a press launch. 

Between about March 2019 and the time he was arrested and charged final April, via corporations that included Chet Mining, Stojanovich defrauded greater than a dozen victims and picked up greater than $2 million, in line with the discharge. 

“Cryptocurrency mining has generated a lot media consideration and public pleasure up to now few years, however new types of cash and funding may generate recent alternatives for old style fraud,” U.S. Lawyer Damian Williams stated within the launch. “Chet Stojanovich has pled responsible to utilizing these time-worn fraud strategies on this new monetary frontier as he stole hundreds of thousands of {dollars} from victims who thought they had been investing in cryptocurrency mining.” 

Stojanovich pled responsible to 1 depend of wire fraud and faces a most penalty of 20 years in jail. His sentencing is scheduled for March 2, in line with the press launch. 

As PYMNTS reported Nov. 10, the Shopper Finance Safety Bureau (CFPB) obtained greater than 8,300 complaints associated to crypto-assets between October 2018 and September 2022, most of them within the final two years. 

In about 40% of crypto-asset complaints dealt with since 2018, shoppers stated frauds and scams had been the principle points. Past hacks, the bureau pointed to different dangers, akin to romance scams, fraudulent transactions and better market volatility. 

“Our evaluation of shopper complaints means that dangerous actors are leveraging crypto-assets to perpetrate fraud on the general public,” CFPB Director Rohit Chopra stated on the time. 

NY Man Admits Guilt in M Crypto Mining Fraud

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