millions of dollars in assets, including luxury cars, jewelry, and real estate properties. The DOJ also revealed that the defendants admitted to defrauding thousands of victims worldwide, who invested in Airbit Club with the promise of guaranteed daily returns on their membership purchases.
Airbit Club operated from 2015 to 2020, luring investors with the promise of high returns through cryptocurrency mining and trading. However, the company did not have any mining or trading operations and instead relied on new investors’ funds to pay off earlier investors, a classic Ponzi scheme.
The DOJ’s investigation revealed that Airbit Club’s operators and promoters used social media platforms and online marketing to recruit new investors, promising them quick and easy profits. The defendants also held lavish events and parties to attract new investors and create a false sense of legitimacy.
The Airbit Club case is one of the latest examples of the growing trend of cryptocurrency-related fraud and scams. As the popularity of cryptocurrencies continues to rise, so does the number of fraudulent schemes that exploit investors’ lack of knowledge and understanding of the technology.
The DOJ’s Assistant Attorney General, Brian C. Rabbitt, warned investors to be cautious and do their due diligence before investing in any cryptocurrency-related scheme. “The Department of Justice will continue to work tirelessly to identify and prosecute those who seek to defraud and exploit innocent investors,” he said.
The Airbit Club defendants are scheduled to be sentenced in March 2021 and face up to 20 years in prison for their crimes. The DOJ has also urged victims of the scheme to come forward and seek restitution.
