Former virtual currency CEO pleads guilty to $9M fraud
Jul. 20, 2017
HARTFORD, Conn. (AP) — The former CEO of companies that sold the virtual currency Paycoin and hashlets has pleaded guilty in Connecticut to a $9 million fraud.
Homero Joshua Garza pleaded guilty on Thursday to wire fraud. Prosecutors say the former Somers resident ran several companies in the business of virtual currency.
Virtual currency can be mined by computers doing complex algorithms. It's is not legal tender but can be used within certain communities instead of cash.
Prosecutors say Garza's sold customers the right to more virtual currency than his companies' computing power could generate. They say he also used money from new investors to pay old investors.
He's scheduled to be sentenced on Oct. 12.