Wednesday, May 25, 2022

US Attorney Holds Info Session for GAW Victims Ahead of Garza Sentencing

US Attorney Holds Info Session for GAW Victims Ahead of Garza Sentencing

Victims of fraud surrounding GAW Miners and its founder Homero Joshua Garza have received invitations to a conference call to discuss issues surrounding the case.

Also read: Major Banks Say IBM’s Blockchain Property Guarantee Test Was Successful

Garza will formerly plead guilty to wire fraud on 20th July 2017 at the federal courthouse in Hartford, Connecticut.

To keep affected parties up-to-date, Assistant United States Attorney John Pierpont will be hosting a conference call on Friday, 14th July at 10AM. Pierpont will brief attendees on the terms of Garza’s plea deal, the sentencing process, and any other questions about the case and court system in general.

GAW: $19 Million From 10,000 Investors

Garza agreed to plead guilty to wire fraud in April, in a criminal case brought by the U.S. Securities and Exchanges Commission (SEC).

Josh Garza GAW miners
Josh Garza (right)

He was charged after complaints of malfeasance surrounding GAW Miners — including failed cryptocurrency Paycoin, cloud mining site ZenCloud, exchange PayBase, and CoinSwap.

Garza’s operation took in over $19 million USD from 10,000 investors. Those investors bought supposed cloud mining contracts called “Hashlets” — which they later discovered were not backed by any mining or computing power.

The authorities accused Garza of operating a Ponzi scheme, paying out old investors with money from the new. When he began to run out of bitcoin, Garza attempted to prolong the scheme by inventing Paycoin.

Garza promised Paycoin would have a minimum “$20 floor” value. He allegedly said he would guarantee the price by using media stories to gain more attention for the project. At times, there were rumors that Paycoin was about to sign deals with major partners like Amazon. However these rumors never had any factual basis.

The U.S. Attorney’s Office has promised to keep victims notified of any updates in the case.

Were you affected by GAW Miners or any of its projects? Let us know in the comments.

Images via GAW Miners

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