them with cryptocurrency miners and hosting services.” However, Stojanovich failed to deliver on his promises and instead used the money for personal expenses.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service Criminal Investigation (IRS-CI). “Stojanovich’s fraudulent scheme preyed on investors who were looking to invest in the emerging cryptocurrency market,” said Special Agent in Charge Ryan L. Korner of the IRS-CI’s Los Angeles Field Office.
U.S. District Judge John F. Walter sentenced Stojanovich to three years in federal prison and ordered him to pay restitution of $2,039,166 to his victims. “The sentence imposed today sends a clear message that those who engage in fraudulent schemes involving cryptocurrency will be held accountable for their actions,” said Acting U.S. Attorney Tracy L. Wilkison of the Central District of California.
Cryptocurrency fraud has become a growing concern for law enforcement agencies as the popularity of digital currencies continues to rise. The DOJ and other agencies have been cracking down on fraudulent schemes involving cryptocurrency, including Ponzi schemes, initial coin offerings (ICOs), and fake cryptocurrency exchanges. Investors are advised to exercise caution and do their due diligence before investing in any cryptocurrency-related venture.
