A U.S. federal grand jury has indicted the founder of digital asset fund Benaiah, accusing the individual of defrauding investors of about $20 million through an alleged Ponzi scheme. According to prosecutors, the founder raised roughly $25.1 million through Benaiah entities starting in 2018. Of that total, about $12 million was allegedly paid back to investors as fabricated returns, while another $5.7 million was diverted for personal use. Prosecutors also allege the founder used forged documents and another person’s identity to obtain $1 million in bank credit. The founder pleaded not guilty at an arraignment on July 10, has since been released on bond, and is scheduled to stand trial on Sept. 15. The case was investigated jointly by IRS Criminal Investigation and the FBI, according to the report cited by Techub from Crypto Briefing.
A U.S. federal grand jury has indicted the founder of digital asset fund Benaiah, alleging the individual ran a Ponzi scheme that defrauded investors of about $20 million.
Prosecutors said the founder raised roughly $25.1 million through Benaiah entities beginning in 2018. Of that amount, about $12 million was allegedly returned to investors as fabricated profits, while $5.7 million was allegedly diverted for personal use. Prosecutors also said the founder used forged documents and another person’s identity to obtain $1 million in bank credit.
The founder pleaded not guilty at an arraignment on July 10, is currently out on bond, and is scheduled to go to trial on Sept. 15.
IRS Criminal Investigation and the FBI jointly investigated the case, according to Techub, which cited Crypto Briefing.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
