A New York jury has delivered guilty verdicts against two former promoters involved in the IcomTech cryptocurrency scheme, which authorities describe as an elaborate Ponzi fraud. David Brend and Gustavo Rodriguez were found guilty of one count each of conspiracy to commit wire fraud for their roles in perpetuating the scam.

According to prosecutors, IcomTech claimed to be a cryptocurrency mining and trading company promising investors guaranteed daily returns. However, the operation was merely a mirage – IcomTech was not actually engaged in any legitimate crypto activities. Instead, it functioned as a Ponzi scheme, using funds from new investors to pay fake "profits" to earlier participants.

The scheme's promoters, including Brend and Rodriguez, are accused of siphoning off investor funds for personal use, financing lavish lifestyles with expensive cars, luxury clothing, and real estate purchases. They hosted glamorous events portraying an image of success to lure more victims with promises of "financial freedom."

As complaints mounted from investors unable to withdraw their supposed profits, IcomTech resorted to issuing a worthless cryptocurrency called "Icoms" in a further cash grab based on false claims it would be accepted for payments.

Ultimately, the scheme collapsed in 2019, leaving tens of thousands of investors defrauded of tens of millions of dollars in losses. "Brend and Rodriguez cheated hardworking people out of their savings through a web of lies," stated U.S. Attorney Damian Williams. "They now face substantial prison sentences as a consequence."

Brend and Rodriguez each face up to 20 years in prison for the wire fraud conspiracy conviction. Sentencing is scheduled for late June.

The case underscores the persistent threat of cryptocurrency investment scams leveraging sophisticated deceptions to fleece unwitting victims. Authorities urge investors to exercise extreme caution and due diligence regarding any crypto-related financial opportunities.