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[Blockchain Today Reporter Kim So-yeon] San Francisco resident Jerry Guo, 33, was sentenced to imprisonment for embezzling more than 20 million dollars. Guo is known to have introduced himself as an ICO consultant to his client.
According to an announcement by the US Department of Justice (DOJ) on the 26th (local time), Jerry Guo committed a multi-million dollar cryptocurrency scam against victims. Judge Beth Labson Freeman admitted Jerry Ji Guo’s ICO fraud, sentenced him to six months in prison and ordered the victim to pay $4.4 million.
While the ICO was in full swing in 2018, Guo introduced himself to the victims as an ICO consultant and tricked him into providing marketing and consulting services to cryptocurrency startups. However, Guo was prosecuted in the Federal Supreme Court in November of the same year for embezzling cash and cryptocurrencies from clients who believed in this and invested.
Guo was found guilty of fraud in August 2019. There were seven more prosecutions, but they were dismissed. Guo is known to be able to face up to 20 years in prison in some cases. In 2019, the U.S. government applied for a preliminary confiscation order and issued a warrant to seize Guo’s property. The U.S. government will return the damage to the victims with Guo’s cooperation.
According to the DOJ, Guo’s fraudulent, embezzled cash and cryptocurrencies are known to be worth over 20 million dollars.
US lawyer David Anderson said, “In this case, cryptocurrency was used for fraud, but the US court is trying to pay compensation to victims through foreclosure.”
Judge Freeman said that even after Guo’s sentence, he must be probated for three years.