How to go to jail for mining? Experience of the head of Scam-project GAW Miners

CEO of mining company GAW Miners Josh Garza was sentenced to 21 months in prison on charges of fraud. A recent hearing in the case GAW Miners has completed the investigation, which lasted for four years. This writes Coindesk.

How not to mine Bitcoin

In 2014, GAW was suspected of creating a financial pyramid — the company has sold more capacity for mining than was actually the case. In the same year, GAW has released a coin Paycoin, which became the main subject of investigation in the future.

Garza, of course, loudly rejected all accusations in his address. However, in 2015, investigators managed to prove the opposite — GAW Miners are really doing not quite legal things. In July last year, Josh Garza was found guilty in the case of the Ministry of Justice. The SEC investigation is still ongoing.

How it all began

Initially GAW Miners to resell equipment for mining. Then the company began to sell its own miner called Hashlet. Sold models are not delivered directly to users, and supposedly functioned on the basis of GAW Miners. At the time, Garza said that it is the most convenient way of mining Bitcoin, because users do not need to service the equipment.

In December 2014, GAW Miners launched its own cryptocurrency Paycoin. On the idea of Garza, Paycoin would soon become a global means of payment.

However, the coin did not help GAW Miners to stay afloat. At the time of its release, the company already suspected of fraud and manipulation of the stock market. After the fall of Paycoin Garza has promised to initiate the process of redemption of the coin. However, from collapse is not saved.

In 2015, Garza came under the scope of SEC. Members of the Commission suspected the CEO of GAW Miners in the creation of a financial pyramid. The investigators found that Garza and his co-conspirators were responsible for stealing more than $ 11 million from defrauded investors. It is unknown who will pay the money to depositors.

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