US court sentences man to three years in prison for $2 million miner scam

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A US District Court sentenced a man to three years in prison for defrauding investors and stealing more than $2 million using a cryptocurrency mining scam.

US Attorney Damian Williamsreported that citizen Chet J. Stojanovich, also known as Chester J. Stojanovich, ran Chet Mining Co LLC from 2019 until his arrest in April 2022. He promised clients to provide them with special equipment for mining cryptocurrencies and provide them with hosting services for miners.

The US Department of Justice claims that the accused embezzledmoney from his victims without providing them with the miners and equipment hosting services purchased from him. Stojanovic spent the funds received on personal expenses and a luxurious lifestyle.

Last November, Stojanovic admittedguilty of one count of wire fraud. The defendant has now been sentenced to three years in prison for fraud.

“Chet Stoyanovich took advantage of the latesttrends in the financial sector to defraud their victims of $2 million. This case provides further evidence that even in innovative areas, old methods of fraud are used. However, our law enforcement agencies are always ready to eradicate these schemes,” the prosecutor said.

At the beginning of the year, the US Department of Justice announced that it would return$17 million to investors affected by the BitConnect cryptocurrency pyramid. In November, the department also began to investigate the November hack of the bankrupt crypto exchange FTX.