The prosecutor is once more making articles for her revolutionary XRP decision that rattled the crypto industry. Judge Analisa Torres, whose location decision that financial XRP selling weren’t stocks, sentenced a blockchain Ponzi scheme producer to 30 months in prison Thursday for defrauding investors of$ 8.4 million.

The SEC filed an appeals short challenging Torres ‘ earlier decision, which established how sure tokens are not intrinsically stocks when sold to retail traders on markets.

Torres ‘ 2024 decision sent ripples through the business. Another significant event full of political theatre is now at risk.

Judge Torres referred to Hernandez ‘” sold valueless cash” in the sentencing while citing evidence that suggests his continued presence in similar techniques.

Hernandez’s guilty plea to conspiracy to commit wire fraud was accepted as part of the punishment after the SEC forwarded the charges for the first time in 2022. It was in July last month.

Before delivering the word, Judge Torres cited lawyers ‘ says that Hernandez had participated in numerous crypto investment strategies as proof that she had already done it.

According to a sealed indictment describing Hernandez ‘ role in “generating excitement [ …] to recruit victims into the scheme,” Hernandez and co-conspirators collaborated on Forcount’s fraudulent crypto trading and mining operations between 2017 and 2021.

Through certain returns, the plan promised to give investors a double-investment opportunity in six months.

” Ms. Hernandez, when complained to, told patients to come to the second scheme”, the prosecutor told the judge, describing how she directed disappointed buyers toward another false options.

Hernandez allegedly confronted at LaGuardia Airport in New York City, and after that, she deleted exchange information from her phone.

One trader told the judge that the fraud caused them to lose their retirement savings and marriage, and the sentencing makes light of the effects the schemes had had on the victims. Victims even reported experiencing particularly vulnerable as a result of their immigration status.

” The subjects were terrified, some were undocumented with the fresh Administration”, a court record from Inner City Press information, quoting an assistant U. S. lawyer.

Managers changes in Manhattan’s top prosecutor

Following the departure of U.S. Attorney Damian Williams in December, there have been administration shifts at the Southern District of New York.

Williams led the trial in high-profile circumstances leading to the prison of characters such as humiliated FTX founder Sam Bankman-Fried and Ghislaine Maxwell, Jeffrey Epstein’s friend. Williams also worked on the case against the singer Sean” Puff” Combs, who now awaits trial.

Previous SEC Chair Jay Clayton has been nominated by President Donald Trump as William’s alternative, signaling a possible change in the company’s approach to crypto-related murder trial. For the position, Clayton is awaiting confirmation from the Senate.

Older producer Juan Tacuri received a 20-year phrase in October 2024 as a result of the Forcount case, which has resulted in a number of related convictions.

The program’s leader, Francisley Da Silva, remains in prison in Brazil.

Daily Debrief Newsletter

Start every day with the best news stories right now, plus unique features, a audio, video and more.

Share This Story, Choose Your Platform!