The United States District Court for the Southern District of New York has moved forward with the sentencing process for key individuals involved in the notorious cryptocurrency Ponzi scheme, AirBit Club.
Announcement of Sentencing for AirBit Club Defendants
On October 3rd, the U.S. Attorney’s Office for New York officially revealed the sentences for three of the five surviving defendants implicated in the AirBit case. Those sentenced include Scott Hughes, Cecilia Millan, and Karina Chairez, all of whom had previously admitted guilt to charges related to money laundering earlier in 2023.
Scott Hughes, an attorney accused of laundering around $18 million from the AirBit Club fraud, has been sentenced to 18 months in prison. Cecilia Millan, a high-ranking promoter for AirBit Club, received a five-year prison term, while Karina Chairez, another senior-level promoter, was sentenced to one year and one day behind bars.
Furthermore, Hughes has been mandated to serve three years of supervised release, while Millan and Chairez will have three years and three months of supervised release, respectively.
The Presentation as a Cryptocurrency MLM Club
The AirBit Club scheme was launched in late 2015, presenting itself as a “multi-level marketing club” within the cryptocurrency realm. The defendants utilized enticing presentations to deceive investors, promising daily returns through cryptocurrency mining and trading activities.
Instead of funding these promoted crypto operations, which never actually existed, approximately $100 million of investors’ funds found their way into the pockets of the scheme’s founders and promoters. Despite user complaints dating back to 2016 about withdrawal delays and hidden fees, the AirBit Club continued its fraudulent activities until 2020.
U.S. Attorney Damian Williams highlighted the significant roles played by Hughes, Millan, and Chairez in perpetuating the AirBit Club pyramid scheme. Williams commented, “At the top echelons of promoters, Millan and Chairez aggressively solicited investments and misled hardworking, unsuspecting investors for personal gain.”
He added, “Today’s sentences send a clear message that anyone involved in facilitating cryptocurrency investment schemes, not just those at the highest levels, will face serious consequences for their crimes.”
These sentences come on the heels of the sentencing of AirBit Club co-founder Pablo Rodriguez, who received a 12-year prison term in late September 2023. Another co-founder, Dos Santos, has pled guilty to charges such as wire fraud conspiracy, money laundering, and bank fraud conspiracy.
Dos Santos is scheduled for sentencing on October 4, 2023. He represents the final defendant to be sentenced out of a total of six individuals associated with the AirBit Club, with one defendant, Jackie Aguilar, passing away before sentencing in May after pleading guilty in February 2023.