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The operator of a cryptocurrency website pleaded guilty in a federal courtroom in San Francisco to defrauding investors out of nearly $1 million, the Justice Department and the IRS said in a joint statement.

Ryan Mark Ginster, 35, of Corona, admitted Wednesday that since February 2018, he operated a website called designed to defraud investors by making false statements about cryptocurrency investment opportunities.

Prosecutors said that if people believe they have been a victim of this fraud scheme, please contact IRS-Criminal Investigation at [email protected] or visit https://www.justice. gov/usao-ndca. /us-v-ryan-mark-ginster-22-cr-00374-jsc.

According to the statement, Ginster claimed on the website that investments would earn 8 percent daily returns and claimed that “This will be JOB REPLACEMENT income, the income that will pay you every day, even when your [sic] sleeping or on vacation.”

Ginster further claimed on the site that investors can “claim your profits anytime you want and they will be INSTANTLY paid to your Bitcoin/Litecoin wallet.”

Ginster admitted that these and many other claims on his website are completely false and are intended solely to influence investors to part with their money or assets.

In the 38 days that was active, the site received approximately 9,026 Bitcoin deposits, totaling approximately 98.12089739 BTC, which was valued at approximately $844,667 at the time.

Ginster admitted that he did not invest the funds, but instead put the funds into his own cryptocurrency wallet, which is now worth more than $1.6 million.

Ginster remains out of custody pending a May 23 sentencing hearing.

The case is being prosecuted by the Corporate and Securities Fraud Division of the U.S. Attorney’s Office for the Northern District of California. This prosecution is the result of an investigation by the IRS-CI Washington DC Cyber ​​Crime Unit.

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Copyright © 2022 Bay City News, Inc. Republication, rebroadcast or any other reuse without the express written consent of Bay City News, Inc.


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