73-Year-Old Arrested in $2.4M Crypto Scam
1min read Federal authorities have arrested a 73-year-old man in connection with a $2.4 million cryptocurrency conspiracy. The suspect, identified as Robert F. Capone, was taken into custody on Tuesday and faces up to 20 years in prison if convicted.
The U.S. Attorney's Office for the Southern District of New York announced the arrest, alleging that Capone was involved in a scheme to defraud investors by promoting a fake cryptocurrency called "Coinage." According to the indictment, Capone and his co-conspirators claimed that Coinage was a revolutionary new cryptocurrency that would revolutionize the industry and generate significant returns for investors.
However, the indictment alleges that Coinage was nothing more than a Ponzi scheme, with early investors being paid off with funds from later investors. The scheme allegedly generated over $2.4 million in revenue, with Capone and his co-conspirators pocketing a significant portion of the proceeds.
The indictment also alleges that Capone and his co-conspirators used social media and other online platforms to promote Coinage, claiming that it was backed by a team of experienced cryptocurrency developers and had the support of major financial institutions. In reality, the indictment alleges that Coinage was a complete fabrication, with no underlying technology or development team.
Capone's arrest is the latest in a series of high-profile cases involving cryptocurrency fraud. In recent years, federal authorities have cracked down on a number of schemes involving fake cryptocurrencies, initial coin offerings (ICOs), and other investment scams. These cases have highlighted the need for greater regulation and oversight of the cryptocurrency industry.
The case against Capone is being prosecuted by the U.S. Attorney's Office for the Southern District of New York, with assistance from the Federal Bureau of Investigation and the Internal Revenue Service. Capone is expected to appear in court in the coming weeks to enter a plea.
