Pablo Renato Rodriguez, the co-founder of AirBit Club, has been handed down a 12-year prison sentence by US District Judge George B. Daniels. According to the US Department of Justice (DOJ), Rodriguez and his co-conspirators were behind a massive global pyramid scheme that defrauded investors of millions of dollars through false promises of cryptocurrency trading and mining profits.
The DOJ’s investigations revealed that the fraudsters convinced victims to purchase AirBit Club memberships with the guarantee of substantial returns. However, they simply diverted the funds for personal gain and laundered the money to hide their illicit proceeds. The court also ordered the forfeiture of the fraudulent proceeds, estimated at $100 million, that includes US currency, Bitcoin (BTC), and real estate.
US Attorney Damian Williams emphasized the severity of this case, as it serves to discourage other would-be fraudsters from making false promises of lucrative cryptocurrency investments. According to court documents, Rodriguez and Gutemberg Dos Santos founded AirBit Club in 2015 and aggressively marketed it as a multilevel marketing club in the cryptocurrency industry. The duo organized extravagant expos and presentations worldwide, which victims paid for in cash. Once they tried to withdraw their funds, the perpetrators delayed the process and charged exorbitant fees.
The fraudsters also used the funds on luxury items, financed more expos to attract new victims, and siphoned money through domestic and foreign bank accounts. Furthermore, Rodriguez’s attorney trust account, managed by Scott Hughes, was instrumental in concealing the fraudulent proceeds.
Before AirBit Club, Rodriguez and Dos Santos were involved in Vizinova, a similar pyramid investment scheme. Hughes, the attorney representing them in the Vizinova case, later helped them to perpetrate the AirBit Club fraud by removing negative information about both schemes from the internet.
With Rodriguez’s sentencing, justice has been served for the victims of AirBit Club. The case is a reminder of the consequences of exploiting cryptocurrency for fraudulent purposes.
