On April 24, United States District Judge Frederic Block found Igbara guilty of conducting money laundering and wire fraud via his Instagram page and various other social media accounts using the pseudonym Jay Mazini.
“Igbara was a crypto con man. He not only created a fake online presence to purport that he was a wealthy crypto investor, but he also used his Instagram persona as proof of success when convincing his unsuspecting victims to invest in his schemes. He conned a New York Muslim community out of millions then simply spent it and gambled it away.” – Thomas M. Fattorusso, IRS-CI Special Agent-in-Charge
As per the U.S. Department of Justice, Igbara operated his Ponzi scheme through a deceptive enterprise named Halal-Capital LLC. Leveraging both the company and his social media sway, the cryptocurrency fraudster amassed funds from unaware individuals, enticing them with appealing rates and fabricated bank transactions as purported payments for digital assets.
Alongside Igbara’s 84-month prison term, Judge Frederic Block mandated that he surrender $10 million as part of his punishment for the offenses.
Global authorities crack down on cryptocurrency fraud
Igbara’s conviction highlights the international endeavor to eliminate cryptocurrency fraud and dishonest individuals from the digital asset landscape. FTX Founder Sam Bankman-Fried received a 25-year sentence for deceiving customers, resulting in losses totaling billions in cash and cryptocurrency.
According to crypto.news, the tech behemoth Google is taking legal action against cryptocurrency scammers who are using counterfeit apps to pilfer funds from investors. These fraudulent activities have purportedly impacted over 100,000 users worldwide.
Across Asia, authorities in India and South Korea have initiated crackdowns on individuals perpetrating various cryptocurrency fraud schemes. India’s Enforcement Directorate has revealed a charge sheet targeting more than 299 entities currently under investigation.
Meanwhile, authorities in South Korea have arrested two fraudsters accused of stealing $4.1 million from an elderly individual using deceptive cryptocurrency investment tactics.
Even with significant losses attributed to cryptocurrency criminals, TRM Labs observed a 9% decline in illicit virtual currency transactions last year. The study revealed a decrease from $49.5 billion in 2022 to $34.8 billion in 2023.
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