The Office of United States Immigration and Customs Enforcement’s Homeland Security Investigations and prosecutors for the Southern District of New York have indicted a man for allegedly participating in a cryptocurrency scheme dubbed Igobit.

According to an announcement on Nov. 6, Asa Saint Clair was charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison if convicted.

Used clients funds for dinners at Manhattan restaurants

The document states that, from 2017 through September 2019, Saint Clair solicited investors to be part of Igobit by World Sports Alliance, a purported intergovernmental organization focused on promoting international development through sports, while falsely promising them guaranteed returns and ownership interests in the organization.

Allegedly, Saint Clair did not dedicate any of the investor funds to Igobit, instead, he used them to pay for his personal expenses, such as dinners at Manhattan restaurants, airline tickets and online shopping. He reportedly diverted funds to other firms controlled by him and members of his family. Special agent-in-charge Peter Fitzhugh commented:

“Saint Claire allegedly touted his company as promoting the values of sports and peace for a better world, yet defrauded all those who invested in his sham company. As alleged, Saint Claire used the money he earned through deceit to fund a lavish lifestyle for him and his family. Through the HSI New York El Dorado Task Force and its strong partnerships, Saint Claire will face time for his actions, and it won’t be in the luxury or comfort he has grown accustomed to.”

US charges man who stole computer power to mine $5 million

In October, U.S prosecutors indicted a man from Singapore for using stolen identities to illegally utilize Amazon Web Services’ cloud computing power for crypto mining. The man allegedly stole several identities and accounts, including those of an unnamed Los Angeles-based game developer. He then used social engineering to gain access to admin privileges and large amounts of cloud computing power on Amazon Web Services. The prosecutors further claimed that the man used illegally accessed virtual machines to mine cryptocurrencies such as Bitcoin (BTC), Litecoin (LTC) and Ethereum (ETH) to amass a total of $5 million.