Defendants David Gilbert Saffron and Vincent Anthony Mazzotta Jr. allegedly solicited users’ deposits for investment and used them for lavish personal expenditures.
The United States Department of Justice (DOJ) has indicted two individuals for allegedly operating a $25-million artificial intelligence (AI) crypto-trading Ponzi scheme.
According to the Dec. 12 announcement, Australian national David Gilbert Saffron and Los Angeles resident Vincent Anthony Mazzotta Jr. are accused of operating trading programs that “falsely promised to employ an artificial intelligence automated trading bot to trade victims’ investments in cryptocurrency markets and earn high-yield profits.”
After receiving users’ deposits, however, the two individuals allegedly spent the money on “private chartered jet flights, luxury hotel accommodations, private mansion rentals, a personal chef, and private security guards.”