The Instagram influencer has been accused of cyber fraud after allegedly cheating followers for $ 2.5 million in Bitcoin.

The Justice Department accuses Jay Mazzini, a social media force who boasted of a $ 33 million fortune known as “donation money”, of organizing a cyber fraud in which he tricked some of his 1 million followers into sending him. Bitcoin in exchange for inflated money that it failed to pay properly for.

The Department of Justice announced the indictment on March 24 after a complaint was filed with the Federal Federal Court the day before. FBI investigation into the case continues, with FBI Assistant Director William F. Sweeney noting:

“Igbara’s character on social media served as a backdrop for the victims’ temptation to sell bitcoins at an attractive but inflated price. A look behind the scenes, however, showed that things are not always what they seem. There was nothing charitable about the bitcoin transactions he made. Tyranny with the victims. ”
Sweeney added: “A quick web search today will reveal a completely different picture of this multimillion dollar scammer.”

According to DOJ documents, the influencer offered to pay subscribers between 3.5% and 5% of the market value of Bitcoin, and claimed that traditional crypto exchanges limit the amount of Bitcoin he can buy.

The alleged phone fraud took place between January and the end of February, and influencers attracted followers on Twitter and Instagram. During this time, the price of bitcoins rose from $ 29,000 to over $ 49,000. According to the complaint, when Bitcoin was valued at approximately $ 47,000 on February 14, the defendant offered to buy Bitcoin for $ 52,500.

After Mazini received bitcoins from fans, it is alleged that he sent fake receipts that reflect the agreed prices where he either did not send the full amount or never sent the money.

According to a complaint filed on March 23, Mazzini was in talks with one of his supporters to buy 50 bitcoins for $ 2.56 million, when the seller sent the agreed amount of bitcoins to receive only $ 500,000 in return.

Mazzini is currently in custody in New Jersey and will appear in New York City court on an unspecified date. If convicted, he faces up to 20 years in prison.

In a DOJ question, IRS-CI Special Agent Jonathan D. Cash across the market. Always be on the lookout and do not be preyed upon for these cryptocurrency schemes.

Source: CoinTelegraph

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