Crypto Ponzi Promoter Sentenced to 20 Years

Juan Tacuri, a senior promoter in the notorious cryptocurrency Ponzi scheme Forcount, was sentenced to 20 years in prison by a federal court in New York on Tuesday. Tacuri, who played a central role in defrauding thousands of victims globally. Particularly targeting Spanish-speaking communities, was handed the maximum statutory term for his involvement in the fraudulent operation. The Forcount scheme later rebranded as Weltsys but continued its deceitful practices until its collapse in 2021.

In a statement, the U.S. Attorney’s Office for the Southern District of New York highlighted Tacuri’s significant role in the scam. Promising guaranteed returns from cryptocurrency trading and mining. Forcount lured victims into investing, only to funnel their funds into the hands of promoters. As a result, many working-class victims lost their savings. Which were instead spent on lavish lifestyles by Tacuri and other scheme leaders.

Forcount: A Classic Ponzi Scheme Disguised in Crypto

Despite its modern facade, Forcount was nothing more than a classic Ponzi scheme dressed up as a cryptocurrency investment opportunity. Victims were told their investments would generate consistent, high returns through cutting-edge crypto trading and mining. But, as U.S. Attorney Damian Williams pointed out. The operation simply recycled funds from new investors to pay out earlier participants, with Tacuri personally enriching himself along the way.

“Juan Tacuri may have claimed to be involved in cutting-edge cryptocurrency investing, but in reality, he was running one of the oldest tricks in the book: a Ponzi scheme,” Williams said. “Instead of using victims’ funds as promised, he spent it on himself. Today’s sentence should serve as a stark reminder that, in the long run, fraud does not pay.”

Operating from 2018 to 2021, Forcount aggressively promoted its investment products at expos and community events. Where Tacuri flaunted wealth and success. His polished presentations and designer clothing helped convince victims that they could achieve financial freedom through the scheme. Behind the scenes, however, investors’ money was being funneled into Tacuri’s personal accounts and used for his extravagant lifestyle. While the promised returns failed to materialize.

The Mindexcoin Token Scam

As Forcount began to crumble, Tacuri and other promoters introduced Mindexcoin, a proprietary token they claimed would gain value when adopted by businesses for payments. Investors were urged to buy the tokens, leading to even greater losses. However, Mindexcoin turned out to be worthless, and by 2021, the entire scheme collapsed. Promoters stopped responding to investors, and withdrawals were halted. Leaving many without any way to recover their funds.

Tacuri’s sentencing includes 20 years in prison, followed by one year of supervised release. He has also been ordered to forfeit over $3.6 million in ill-gotten gains, including a Florida property purchased with victim funds. Additionally, he must pay restitution of $3.6 million to those affected by the scheme.

Crypto Ponzi Schemes on the Rise

The sentencing of Juan Tacuri is a significant victory in the fight against cryptocurrency-related Ponzi schemes, but it’s just one case in a larger trend of fraudulent operations taking advantage of the crypto space. As the popularity of digital currencies grows, so too do the number of scams that exploit the technology for personal gain.

In March 2024, the SEC charged 17 individuals connected to CryptoFX, a $300 million Ponzi scheme targeting Latino investors. Promoters of CryptoFX promised risk-free profits from crypto trading but instead diverted the funds for personal use. The scheme raised funds even as warnings mounted, and investors were left with substantial losses.

Similarly, NovaTech, a multi-level marketing scheme, misled more than 200,000 investors and raised $650 million before collapsing in 2023. And in 2019, the infamous PlusToken scam defrauded investors out of $3 billion, primarily targeting Asian investors with promises of high returns through a crypto wallet and exchange platform. Mirror Trading International (MTI), another Ponzi scheme, collapsed in 2020 after amassing $1.7 billion in Bitcoin (BTC) by falsely claiming to use AI-powered trading bots.

Conclusion

The sentencing of Juan Tacuri is a clear message that those who prey on unsuspecting investors in the crypto space will be held accountable. While cryptocurrency continues to evolve, so too do the scams that take advantage of it. Investors are urged to remain cautious, particularly when confronted with promises of guaranteed returns. As the world of cryptocurrency grows, so does the importance of vigilance and regulation to protect individuals from falling victim to fraudulent schemes.