GAW Miners CEO Faces Jail Time for PayCoin Ponzi Scheme
The Hartford court held Homero Garza accountable as the prime lead behind the PayCoin Ponzi Scheme. According to Hartford Business reports on the 13th of September, GAW Miners CEO, Homero Joshua Garza, received twenty one months of jail time in response to his participation in fraudulent activities associated with a scam token known as PayCoin.
The court declared his sentence to begin 4th January 2019 with an additional verdict of a three year supervised release along with home detention for six months. However, Garza need not serve 20 years of original imprisonment.
Besides serving his sentence, the GAW Miners head is also charged with a compensation fee of $9.2 million to associated cryptocurrency investors. The fee acts as an approximate estimation of the total financial lost over a nine month PayCoin Ponzi scam.
The Foundation of GAW Miners
GAW Miners is a Bloomfield-based organization, dating back to 2014. The firm started functioning as a specialized manufacturer, supplier, and seller of hardware required to carry out crypto mining operations. However, only one year after the firm had been locked down following the alleged Ponzi Scam and lawsuit held late 2016.
PayCoin, the digital token generated by GAW Miners functioned on both PoW and PoS with an algorithm known as SHA-256. Developers at the Ponzi firm assured investors trading prices went for $20 per PayCoin, while reports indicate that these values did no exceed $15.92.