The U.S. District Court for the Southern District of New York is proceeding with sentencing for a key figure involved in the cryptocurrency Ponzi scheme AirBit Club.
On October 3, the U.S. Attorney’s Office in New York announced the sentencing of three out of the five remaining defendants in the AirBit case, namely Scott Hughes, Cecilia Millan, and Karina Chairez. This comes several months after all three defendants pleaded guilty to money laundering and related charges in early 2023.
Scott Hughes, an attorney involved in laundering approximately $18 million from the AirBit Club scam, received an 18-month prison sentence. Cecilia Millan, a senior promoter of AirBit Club, was sentenced to five years behind bars, while Karina Chairez, another senior promoter, received a one-year-and-one-day prison term.
Furthermore, Hughes was sentenced to three years of supervised release, while Millan and Chairez were each given three years and three months of supervised release, respectively.
AirBit Club, originally set to launch in late 2015, was marketed as a "multi-level marketing club" within the cryptocurrency industry. The defendants used persuasive presentations to deceive investors into believing that AirBit Club would deliver daily returns from cryptocurrency mining and trading. However, instead of investing in the crypto operations as claimed, the $100 million collected from investors ended up lining the pockets of the founders and promoters.
Although some users began to complain about withdrawal delays and hidden fees in early 2016, AirBit Club managed to sustain its fraudulent activities until 2020. In announcing the verdict, U.S. Attorney Damian Williams highlighted the significant roles played by Hughes, Millan, and Chairez in perpetuating the AirBit Club Ponzi scheme. Williams stressed that today's sentencing sends a strong message, emphasizing that anyone involved in cryptocurrency investment schemes, not just those at the top, will face serious consequences for their crimes.
Previously, AirBit Club co-founder Pablo Rodriguez was sentenced to 12 years in prison in late September 2023. Another co-founder, Dos Santos, pleaded guilty to various charges related to wire fraud, money laundering, and bank fraud conspiracy. Santos is scheduled for sentencing on October 4, 2023. Santos will be the final member of the six defendants linked to the AirBit Club to be sentenced. Jackie Aguilar, who pleaded guilty in February 2023, passed away in May, just weeks before her scheduled sentencing.
