Wednesday, September 27, 2023

AirBit Club co-founder Pablo Rodriguez = 12 years

Pablo Rodriguez, co-founder of AirBit Club — a cryptocurrency Ponzi scheme that swindled investors of over $100m — has been sentenced to 12 years in prison. He pleaded guilty to wire fraud conspiracy charges in March. Rodriguez preyed on unsophisticated investors with false promises that their funds were invested into legitimate cryptocurrency trading and mining operations. The convict was ordered to pay a forfeiture of $65m and to forfeit other items, including a total of 3,800 Bitcoin worth $100m. Rodriguez’s Irvine residence in California, $900k in cash seized from the property and nearly $1m previously held in escrow for a Gulfstream jet. Other defendants have also pleaded guilty and are awaiting sentencing.

AirBit Club launched in 2015.
Investors were told that AirBit earned returns on trading and cryptocurrency mining and that they would earn guaranteed returns on their membership. By 2016, those wanting to withdraw money were met with excuses, delays and hidden fees and were told they must recruit new members to receive their money.
AirBit Club victims could view their “balances” on an online portal but the numbers were all fake and they couldn't withdraw funds.