An Arizona man who masterminded a $13 million crypto Ponzi scheme pleaded guilty this week to money laundering and conspiracy to obstruct justice charges.

The U.S. Department of Justice (DOJ) says Vincent Anthony Mazzotta Jr., 54, schemed with his co-defendant David Saffron and others to fraudulently promise investors high-yield profits from crypto investments that pretended to rely on automated trading robots powered by artificial intelligence (AI).

Mazzotta Jr. lured investors by convincing them to sink money into multiple crypto investment companies. When those companies disappeared with the investors’ capital, he went one step further and created a fake government entity called the Federal Crypto Reserve (FCR), which solicited thousands of additional dollars from victims by pretending to investigate those same firms.

The DOJ says Mazzotta Jr. also obstructed justice after Saffron’s initial arrest by destroying evidence at his co-defendant’s apartment, and he attempted to falsify the records of his business, Runway Beauty Inc., to hide his participation in the fraud from a federal grand jury.

Bill Essayli, US Attorney for the Central District of California, warns that criminals like to use the “relative novelty” of crypto assets to prey on victims.

Mazzotta Jr. faces a maximum of 10 years in prison on the money laundering charge and five years for conspiring to obstruct justice.

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Moore convinced more than 40 people to give him money by claiming he would use it to buy crypto mining equipment and deliver steady daily profits.

From January 2021 to October 2022, Moore ran a company he called Quantum Donovan LLC. He told investors their money would be used to set up mining machines that could generate about one percent in returns each day. Instead, he used the money to buy an upscale apartment, expensive luggage, and electronics.

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Moore also used some of the funds to repay earlier investors, which made the operation appear to be working and encouraged others to join.

Many of his victims were fellow rugby players from states including Washington, Utah, Oregon, Connecticut, and New Jersey. Prosecutors said he took advantage of personal connections and trust within the rugby community to find new investors, who together lost more than $387,000.

At the sentencing, Acting US Attorney Teal Luthy Miller said Moore used the hype around cryptocurrency to carry out a “Ponzi scheme”. Miller also noted how the case left behind broken relationships among teammates and friends.

Judge Tana Lin, who handed down the sentence, said Moore’s actions caused emotional and mental harm to his victims, not just financial losses. Along with the prison term, Moore was ordered to repay the money he stole.

On July 16, Paul Chowles, a former officer from the UK’s National Crime Agency, was sentenced to five and a half years. What happened? Read the full story.

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Hassan Shittu

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Hassan Shittu

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Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in…

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June 30, 2025

Dwayne Golden of Harrisburg, Pennsylvania, has been sentenced to over eight years in federal prison for his role in a $40 million crypto Ponzi scheme, according to the U.S. Department of Justice.

The sentence was delivered by Judge William F. Kuntz II in a Brooklyn federal court. The 57 years old man had pleaded guilty in September 2024 to conspiracy to commit wire fraud and money laundering.

According to the prosecutor, Golden and his co-conspirators, Gregory Aggesen, Marquis Demacking Egerton (also known as “Mardy Eger”), and William White, created and operated fraudulent investment platforms.

These include EmpowerCoin, ECoinPlus, and Jet-Coin, between April and August 2017. These websites promised investors fixed profits through overseas crypto trading.

No Real Trading Took Place: DOJ Exposes Crypto Scam Network

United States Attorney Nocella noted that the companies only lured investors with promises of guaranteed high returns from overseas cryptocurrency trading. However, prosecutors say none of the companies engaged in any real trading activity.

Instead, the defendants used incoming investor funds to pay earlier investors or diverted the money for personal use, consistent with a Ponzi scheme.

FBI Assistant Director Raia noted that the platforms raised more than $40 million in total. After the schemes collapsed, the defendants tried to hide their crimes by obstructing federal investigations.

Between July 2017 and March 2022, Golden, Aggesen, and White attempted to hinder both a Federal Trade Commission (FTC) inquiry and a federal grand jury investigation. Authorities said they destroyed key evidence and gave false and misleading statements to investigators.

Notably, William White was previously sentenced to 30 months in prison for his role. Meanwhile, Aggesen and Egerton have pleaded guilty and are awaiting sentencing.

As part of his sentence, Golden was also ordered to forfeit roughly $2.46 million in illegal gains. The court will decide on restitution to victims at a later date.

Victims May Be Eligible for Restitution

In a glimmer of hope, The U.S. Attorney’s Office encouraged victims of EmpowerCoin.com, ECoinPlus.com, or Jet-Coin.com to submit restitution claims through the FBI.

“This office is committed to protecting investors and holding fraudsters accountable,” said U.S. Attorney Joseph Nocella. “We will continue to pursue justice for those harmed.”

Earlier this month, five individuals admitted guilt in a separate case involving a $36.9 million cryptocurrency fraud scheme. The group tricked U.S. citizens and funneled the stolen funds to a crypto scam operation based in Cambodia.

With crypto-related scams growing, CertiK co-founder Ronghui Gu reported more than $2.1 billion already lost in 2025. The majority of these losses stem from compromised wallets and poor private key management.

Relatably, The DOJ filed a civil forfeiture complaint to seize $225.3 million in Tether’s USDT, marking the largest crypto seizure tied to a “pig butchering” investment scam.

DOJ officials noted that the action is part of a broader crackdown on transnational scams, with over $9.3 billion in crypto losses reported in 2024, and $5.8 billion linked directly to investment fraud.

The leaders of a Brazilian crypto Ponzi scheme have reportedly been handed a combined sentence of over 170 years behind bars.

According to a new report, the three leaders of Braiscompany, which perpetrated the scheme, were sentenced for defrauding investors out of nearly $190 million, or $1.1 billion Brazilian Reals.

The report says the company’s main operator, Joel Ferreira de Souza, was handed a sentence of 128 years behind bars, while the other two perpetrators, Gesana Rayane Silva and Victor Augusto Veronez de Souza, were given sentences of 28 and 15 years, respectively.

According to authorities, the trio promised “exorbitant” returns on the crypto investments of their victims in order to initially get their funds and engaged in money laundering.

Ferreira de Souza was found to be controlling crypto portfolios through third parties, as well as using shell companies to facilitate his crimes. He was convicted of 11 counts of money laundering, while Reyane Silva, the firm’s broker, was found responsible for intermediating financial transactions and transporting funds. De Souza, Joel’s son, was also found guilty of being involved with one of the companies involved in the illegal transactions.

The judge in the case said that proceeds from the scam should go directly to the government. However, Artêmio Picanço – the lawyer representing the victims of Braiscompany – argued on one of his social media accounts that the fund should go directly to the victims.

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Law enforcement authorities in India reportedly seized crypto assets linked to the BitConnect Ponzi scheme that defrauded hundreds of victims before collapsing in 2018.

Indian Express reports that the Enforcement Directorate (ED) seized Rs (Indian Rupee) 1,646 crore or nearly $190 million in crypto assets during its investigation of BitConnect.

The agency, which is in charge of enforcing economic laws and combating financial crimes in India, also seized Rs 1.35 million ($15,550), an SUV and digital devices during searches in the Indian state of Gujarat on February 11th and 15th.

The ED says that from November 2016 to January 2018, the people behind the scheme allegedly amassed funds from investors around the world, including participants located in India. 

BitConnect co-founder Satish Kumbhani allegedly established a network of promoters who received commissions when they enticed investors into depositing cash and Bitcoin (BTC) into the purported lending program. 

The promoters also posted fictitious information on the BitConnect web portal, claiming an average of 1% returns per day or about 3,700% per year. 

The ED says that despite BitConnect’s representation that it could generate up to 40% monthly returns using a proprietary trading bot, the perpetrators of the scheme did not use the invested funds for trading but deposited them into digital wallets that they controlled.

Authorities also say the crypto wallets carried out transactions through the dark web to make them untraceable, but by following on-chain transactions and gathering ground intelligence, the agency identified the wallets and the location of the devices that held the cryptocurrencies.

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US authorities in the state of Nevada have accused Las Vegas business owner Brent C. Kovar of allegedly running a million-dollar cryptocurrency Ponzi scheme. If found guilty, Kovar faces a long prison term with a fine of $4.5 million.

US Government Vs. Brent C. Kovar

In a press release on February 14, the US Attorney’s Office of the District of Nevada unveiled an indictment against Brent Kovar for allegedly running a pyramid scheme disguised as a Las Vegas-based crypto mining company.

According to US authorities, Kovar claimed to operate a profitable, AI-integrated digital asset mining firm known as Profit Connect with fixed interest rates of 15%-30% APR and a 100% cash back guarantee on investments. 

In marketing Profit Connect, the defendant allegedly utilized a website, YouTube video, and PowerPoint presentation which provided a false image of the business that encouraged investments. In total, Kovar received an estimated $24 million from about 400 investors.

However, authorities claim that the business owner merely used investment funds to market and operate the crypto Ponzi scheme and spend on expenses such as gifts for employees and a personal residence for himself.

In presenting his pyramid scheme as a legitimate business, the plaintiff stated that Kovar also repaid some investors with false profits via wire transfer and checks through the US Postal Service as if generated from the purported crypto mining activity.

Commenting on the indictment, Ryan Korner, an officer with the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) and active agent on this case expressed the agency’s commitment to proving Brent Kovar guilty.

Korner Said: 

Mr. Kovar allegedly stole victims’ hard-earned money by making false representations regarding his investment company, including misleading some victims to believe their investments were backed by the FDIC. The FDIC OIG is committed to identifying, and holding accountable, those who endanger our Nation’s financial system by victimizing others for their personal gain.

Potential Legal Consequences 

According to the US Attorney’s Office in Nevada, Kovar is charged with 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering. The defendant is expected to appear before US Judge Jennifer A. Dorset in a jury trial that will commence on April 8, 2025.

If found guilty, Brent Kovar faces a potential prison sentence of 330 years and a maximum fine of $4.5 million based on the discretion of the judge in accordance with the US Sentencing Guidelines and other legal factors.

In other news, the crypto market remained valued at $3.18 trillion following a 0.07% decline in the past day.