According to a Justice Department (DOJ) press release on Tuesday, a San Francisco man is being jailed after a US court convicted him of carrying out a multi-million dollar cryptocurrency fraud.
33-year-old Jerry Ji Guo was sentenced to six months in prison by US District Judge Beth Labson Freeman.
During the height of the ICO madness in 2018, Guo presented himself to clients as an ICO advisor and offered to run marketing and advisory services for cryptocurrency startups.
Instead of doing his job as promised, Guo embezzled the customers’ cash and cryptocurrency. He was charged with the crime by a federal grand jury in November 2018.
The San Francisco man pleaded guilty to wire fraud in August 2019. He had been charged on seven other cases, but the additional charges were dismissed. Guo may have been hooked in prison for 20 years if found guilty of all charges, the Daily Beast reported at the time.
In 2019, the U.S. government received a set motion for a preliminary foreclosure order and also received warrants to confiscate the client’s funds from Guo. According to a final forfeiture warrant and with the assistance of Guo, the US government is now able to return stolen property to victims.
The current value of the stolen cash and cryptocurrency is estimated at over $ 20 million, according to the DOJ.
“This case shows that we can use the loss of crime to compensate fraud victims, even if cryptocurrency is used in the fraud,” said US attorney David Anderson.
Guo was also ordered by Judge Freeman to be monitored by the authorities for three years after he was released from prison.