A Utah resident has been sentenced to 36 months in federal prison for orchestrating a sophisticated $5.4 million fraud scheme involving cash-to-cryptocurrency conversions. The sentencing, issued by a U.S. District Court judge in Salt Lake City, follows the man’s conviction on multiple counts of wire fraud related to the illicit operation. According to federal prosecutors, the defendant solicited funds from numerous victims, assuring them that their cash—totaling approximately $5.4 million—would be quickly and safely converted into digital assets such as Bitcoin and Ethereum, often promising high, guaranteed returns. Investigations revealed that the defendant failed to execute the promised transactions and instead misappropriated a significant portion of the funds for personal use, including funding a lavish lifestyle and settling personal debts. The Department of Justice emphasized that the scheme preyed on investors seeking entry into the digital asset market. In addition to the three-year prison sentence, the court ordered the defendant to pay full restitution to the victims, amounting to $5,400,000, and mandated three years of supervised release following incarceration. Authorities stated the prosecution underscores their commitment to combating financial fraud in the rapidly evolving cryptocurrency investment sector.
Source: Utah man sentenced to three years for fraud, $5.4 million cash-to-crypto scheme
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