IcomTech cryptocurrency Ponzi scheme promoter sentenced to 71 months in prison

According to Decrypt, IcomTech senior salesman Magdaleno Mendoza was sentenced to 71 months in prison by a U.S. federal court for operating a cryptocurrency Ponzi scheme targeting Hispanic investors.

The scheme masqueraded as cryptocurrency mining and trading, promising fixed returns, but was actually a typical multi-level marketing model. The court also ordered Mendoza to pay nearly $790,000 in restitution and forfeited $1.5 million in assets. According to the U.S. Attorney's Office for the Southern District of New York, IcomTech was established in mid-2018 and collapsed by the end of 2019, resulting in millions of dollars in losses for investors. Mendoza had promoted at least two other crypto scams and was involved in three similar schemes after the collapse of IcomTech.