{"id":10741,"date":"2023-03-06T11:18:37","date_gmt":"2023-03-06T11:18:37","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=10741"},"modified":"2023-03-06T11:18:38","modified_gmt":"2023-03-06T11:18:38","slug":"us-sentences-man-to-3-years-in-prison-for-defrauding-investors-in-crypto-mining-scheme","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=10741","title":{"rendered":"US Sentences Man to 3 Years in Prison for Defrauding Investors in Crypto Mining Scheme"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>A U.S. district judge has sentenced a man to three years in prison in a fraudulent cryptocurrency mining scheme. The defendant \u201cmisappropriated his victims\u2019 money and failed to provide them with the miners and miner-hosting services they had purchased from him,\u201d according to the U.S. Department of Justice (DOJ).<br \/><\/strong><\/p>\n<h2>Man Sentenced to Prison for Defrauding Investors in Crypto Mining Scheme<\/h2>\n<p>The U.S. Department of Justice (DOJ) announced Thursday that Chester (Chet) Stojanovich has been sentenced to three years in prison \u201cfor defrauding purchasers of cryptocurrency miners and miner-hosting services.\u201d He pled guilty in November last year to one count of wire fraud.<\/p>\n<p>The DOJ explained that from at least 2019 until his arrest in April 2022, Stojanovich \u201callegedly defrauded more than a dozen victims of more than $2 million through fraudulent misrepresentations that he would provide his customers with specialized cryptocurrency-mining computers (\u2018miners\u2019) and miner-hosting services that would provide the victims with a lucrative stream of \u2018hash power\u2019 convertible into cryptocurrency.\u201d The Justice Department added:<\/p>\n<p>Instead, Stojanovich misappropriated his victims\u2019 money and failed to provide them with the miners and miner-hosting services they had purchased from him.<\/p>\n<p>Besides failing to provide the buyers with the cryptocurrency mining equipment and the hosting services they had bought, the DOJ said Stojanovich \u201cemployed deceptive practices to create the illusion that such miners had been acquired and were being used to provide hash power to those customers.\u201d<\/p>\n<p>Moreover, Stojanovich allegedly \u201cmisappropriated his customers\u2019 funds and spent the funds on unrelated and personal expenditures, including chartered air flights, hotel rooms, limousines, and private parties,\u201d the Department of Justice detailed. Noting that Stojanovich was sentenced on Thursday before U.S. District Judge Denise Cote, the DOJ concluded:<\/p>\n<p>In addition to his prison sentence, Stojanovich \u2026 was sentenced today to three years of supervised release, forfeiture of $2,158,927, and restitution to his victims in the amount of $2,108,927.<\/p>\n<p><em><strong>Do you think Stojanovich should go to prison for more than three years for defrauding investors in this crypto mining scheme? Let us know in the comments section below.<\/strong><\/em><\/p>\n<p>Kevin Helms <\/p>\n<p class=\"article__body__author__info__about\">\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.<\/p>\n<p><i class=\"td-icon-font td-icon-mail-1\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/us-sentences-man-to-3-years-in-prison-for-defrauding-investors-in-crypto-mining-scheme\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A U.S. district judge has sentenced a man to three years in prison in a fraudulent cryptocurrency mining scheme. The defendant \u201cmisappropriated his victims\u2019 money and failed to provide them with the miners and miner-hosting services they had purchased from him,\u201d according to the U.S. Department of Justice (DOJ). Man Sentenced to Prison for Defrauding [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10742,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-10741","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10741","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10741"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10741\/revisions"}],"predecessor-version":[{"id":10743,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10741\/revisions\/10743"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/10742"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}