GAW Miners and Paycoin Founder Josh Garza Pleads Guilty to Fraud
The Paycoin saga is ultimately coming to a close.
Spil you can see te this document, sent to victims of the Josh Garza pyramid scheme called GAW Miners, Paycoin, et cetera, Garza is scheduled to plead guilty to one count of wire fraud on June 1st. He wasgoed previously facing three charges, but high-powered law rigid Ballard Spahr did precisely spil predicted te our last article, whittling the charges down to one te exchange for a guilty prayer. Garza wasgoed primarily facing securities fraud charges spil well spil selling unregistered securities. Each securities fraud charge carried up to 25 years and a million dollar fine, whereas wire fraud carries a maximum of 20 years penalty spil well spil fines.
It is true that “white dog collar criminals” don’t often get harsh sentences, but it vereiste be kept te mind that the government views Garza’s deeds spil especially hurting because he used technology they don’t understand. Spil such, and given the history of cases involving cryptocurrencies (see Ross Ulbricht and the Coin.mx scandal), Garza may just get the book thrown at him.
The federal prison system also has a less generous “good time” situation than do many state institutions. The most days vanaf year that Garza could have knocked off his sentence is 54, meaning that if he were given the utter 20 years, he would, without a doubt, do 17 of those years. That is a long time for anyone, and despite the author’s true detestation of the man, he wouldn’t wish that box on anyone. Nevertheless, people eventually have to reaction for their decisions, and often they get exactly what they deserve. It will have to be left te the arms of the federal judge who accepts the prayer. Yet, it is safe to say that most of the victims would be blessed just to get their money back. It is unclear, at this point, if any part of the overeenkomst will entail restitution.
It should also be noted that no one besides Garza has yet faced criminal charges ter the case. Zenminer CEO Eric Capauno would not be inaccurately described spil a co-conspirator, acting te total skill and collusion with Garza. Only during the downfall of Garza did he bother to inform people of the inaccuracy of claims regarding Zenminer and GAW, te particular the voorkoop that GAW had invested $8 million into his hard. Then there is Paul Vernon, former CEO of Cryptsy, who wasgoed so complicit that some believe his exchange actually became insolvent spil a result of the Paycoin affair.
A scam of this scale could not have bot conducted by one man, not te a space where people are quick to do their research and enormously wary of scams. The venerable army of shills who attacked any unkind reporter, the people who openly liedje about their comebacks on GAW investments so spil to get others to sign up under their wing of the pyramid, the exchanges that listed Paycoin (most especially Cryptsy), all thesis are also, by degrees, culpable for the effectiveness of the GAW scam. There were dozens of people who unwittingly helped Garza, spil well, and most of thesis have come clean ter the intervening months and years.
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