Crypto scammer Jay Mazini will give up $10 million in religious Ponzi schemes.
Influencer on social media Jabara Igbara, also known as Jay Mazini, received a seven-year prison sentence for using a cryptocurrency fraud scheme to steal over $8 million from Muslims.
Igbara was found guilty on April 24 by United States District Judge Frederic Block of planning wire fraud and money laundering through his Instagram page and other social media accounts while using the identity Jay Mazini.
“Igbara was a crypto con man. He not only created a fake online presence to purport that he was a wealthy crypto investor, but he also used his Instagram persona as proof of success when convincing his unsuspecting victims to invest in his schemes. He conned a New York Muslim community out of millions then simply spent it and gambled it away.”
Thomas M. Fattorusso, IRS-CI Special Agent-in-Charge
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The U.S. Department of Justice claims that Igbara used a phony company called Halal-Capital LLC to run his Ponzi scam. The cryptocurrency scammer used the business and his social media following to trick gullible people into parting with their money by posing as a buyer of digital assets, promising enticing rates, and fabricating bank transactions.
Global authorities crack down on cryptocurrency fraud
The conviction of Igbara highlights a global initiative to rid the digital asset ecosystem of unscrupulous actors and cryptocurrency fraud. founder of FTX, Sam Bankman-Fried, received a 25-year sentence for cheating clients out of billions of dollars in cryptocurrency and cash.
Tech behemoth Google is suing cryptocurrency scammers who use phony apps to defraud investors of their money, according to crypto.news. Globally, the scams reportedly impacted over 100,000 users.
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In Asia, Indian and South Korean authorities have launched campaigns against malicious individuals behind various crypto fraud schemes. India’s Enforcement Directorate disclosed a charge sheet with over 299 entities under investigation.
Meanwhile, South Korean police apprehended a pair of fraudsters suspected of stealing $4.1 million from an elderly citizen through fake crypto investment strategies.
Despite the massive amounts lost to crypto criminals, TRM Labs noted a 9% decrease in illicit virtual currency transactions last year. The research found a reduction from $49.5 billion in 2022 to $34.8 billion in 2023.
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