Tuesday, November 12, 2024
6.8 C
London

86-Year-Old Lawyer to Pay $14M for Crypto Ponzi Scheme

David Kagel, an 86-year-old ex-attorney from California, has been sentenced to five years of probation and ordered to pay almost $14 million for his involvement in a large cryptocurrency Ponzi scheme.

Kagel received the sentence on October 8 from Judge Gloria Navarro of the Las Vegas federal court after Kagel pleaded guilty to conspiracy to commit commodity fraud in May.

He is now in hospice due to his health problems and will be serving his probation in Las Vegas. If he walks out of the facility, he will be required to wear an electronic bracelet.

Kagel and two other individuals from December 2017 until June 2022 defrauded individuals into investing in a fake crypto bot trading scheme that was riskless and guaranteed high returns. They fraudulently solicited the scheme and raised about $15 million from the investors.

Being a lawyer, gave Kagel access to the letterhead of his law firm, which he used to give the impression of legitimacy to the victims. He promised investors that they would be getting 20% to 100% profits within the space of 30 days. He also pretended that he had 1,000 Bitcoin worth $11 million to secure the investments.

Kagel’s law license was then suspended in 2023 by the California Supreme Court for embezzling $25000 from clients. His two accomplices, David Saffron and Vincent Mazzotta have denied any wrongdoing and are set for trial in April 2025.

David Kagel’s sentencing sends a clear message that financial fraud, especially in the cryptocurrency space, will not be tolerated. Holding perpetrators accountable is crucial for protecting investors and restoring trust in the market.

Also Read: Cardi B’s X account promotes WAP token. Is this a scam?

Hot this week

Could XRP, Solana be next in the crypto ETF race after Trump’s win?

Journalist Posted: November 12, 2024 The growing interest in crypto ETFs...

Just In: Bitcoin (BTC) sets another record high for the day; $100k in close reach?

contributor Posted: November 12, 2024 Bitcoin has registered a rapid rise...

Is Bitcoin’s bull run at risk of ending after $81K ATH?

Bitcoin bull run is at high risk of losing...

Elon Musk pushes for Fed overhaul – Could Bitcoin be the key?

Musk supports Trump’s push for presidential control over the...

BTC Climbs to $85,000: Why is Bitcoin Up Today?

In what has been a monumental show of strength...

Topics

Could XRP, Solana be next in the crypto ETF race after Trump’s win?

Journalist Posted: November 12, 2024 The growing interest in crypto ETFs...

Just In: Bitcoin (BTC) sets another record high for the day; $100k in close reach?

contributor Posted: November 12, 2024 Bitcoin has registered a rapid rise...

Is Bitcoin’s bull run at risk of ending after $81K ATH?

Bitcoin bull run is at high risk of losing...

Elon Musk pushes for Fed overhaul – Could Bitcoin be the key?

Musk supports Trump’s push for presidential control over the...

BTC Climbs to $85,000: Why is Bitcoin Up Today?

In what has been a monumental show of strength...

Bitcoin at $81K: Is extreme ‘crypto greed’ a warning for BTC traders?

With the crypto greed index at elevated levels, asset...

MicroStrategy Buys $2B More in Bitcoin at $74,463 per Coin

MicroStrategy, the Virginia-based business intelligence firm run by Michael...

BRICS Announces Proposal to Create Global Crypto Investment Platform

In what is certainly a groundbreaking moment for the...
spot_img

Related Articles

Popular Categories

spot_imgspot_img