A Houston resident has pleaded guilty to operating a fraudulent cryptocurrency investment scheme, according to an announcement from U.S. Attorney Nicholas J. Ganjei.
Samuel Ayala-Ibarra, 45, admitted in federal court that he ran JASTBITME, a company based in Houston, between July and November 2017. The business promised investors high returns through cryptocurrency investments but instead used their funds for personal expenses and to pay earlier investors. Ayala-Ibarra also paid others to bring in new clients.
According to the authorities, JASTBITME produced fake documents showing false profits and growth to convince clients to reinvest. Many victims never received either their original investments or the promised profits.
Senior U.S. District Judge Kenneth M. Hoyt will sentence Ayala-Ibarra on Nov. 3. He faces up to 20 years in prison and a maximum fine of $250,000 for each of three wire fraud counts.
Ayala-Ibarra remains in custody until sentencing.
The United States Secret Service led the investigation into the case. Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case, while Assistant U.S. Attorney Kristine Rollinson is handling seizure and forfeiture matters.
“
