The Department of Justice (DoJ) has named two people as 51-year-old Australian David Gilbert Saffron and 52-year-old Los Angeles resident Vincent Anthony Mazzotta Jr.
They are accused of running a number of cryptocurrency scams under the names “Bitcoin Yoda” and “Blue Wizard.” The alleged scams, which involved dishonest methods like AI crypto trade bots and a fake recovery service, were worth a total of $25 million.
The DOJ says that Saffron and Mazzotta lured people into different cryptocurrency schemes by advertising an AI trading bot that was supposed to be able to make big gains from money that was deposited. Instead of investing the money as promised, the people who are being accused are said to have spent it on personal luxuries like private jets, luxury trips, and rented mansions. It was said that having a personal chef and security guards added to the costs.
![From Crypto Guru to alleged con nan: "Bitcoin Yoda" faces $25 million scam charges image 52](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/12/image-52.png?resize=798%2C696&ssl=1)
![From Crypto Guru to alleged con nan: "Bitcoin Yoda" faces $25 million scam charges image 52](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/12/image-52.png?resize=798%2C696&ssl=1)
People who fell for the scams were supposedly told they had lost money and were forced to pay a fake organization called the “Federal Crypto Reserve” to help investigate and get back their supposedly lost money.
Based on the accusation, Saffron is said to have used fake names like “Blue Wizard,” “Bitcoin Yoda,” “David Gilbert,” and “Dave Gabe” to hide his identity. The DOJ also says that the accused people slowed down investigations by doing things like hiding assets, destroying or hiding evidence, and making up records. They are also said to have used crypto mixers and “blockchain hopping” to hide where trades came from.
Circle Society, Bitcoin Wealth Management, Omicron Trust, Mind Capital, and Cloud9Capital are some of the fake cryptocurrency programs that the accused are linked to.
Saffron and Mazzotta are both being charged with wire fraud, money laundering, plot to commit wire fraud, obstruction of justice, and wire fraud and money laundering. The two could spend more than 20 years in jail if they are found guilty. As this case shows, being careful in the crypto world is very important, and there needs to be strict regulation to protect investors from scams.
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