GAW Miners Josh Garza’s Plea Deal Details Released About Bitcoin Scam Sentencing
The plea deal for Josh Garza’s has just been released to the public; thus, this will be able to give us a little more insight on how his sentencing for September 13th might go.
More About Josh Garza’s
His legal name is Homero Joshua Garza, and he was the head of the GAW Miners, which was considered to be a significant player in the industry, well until it collapsed.
There have been some accusations about the company using the hardware just before they shipped it; thus, this would delay the shipments so that they are able to keep the hash power that is offline and numerous other things.
But things started going sideways when the company decided it was time to start their cloud mining operations, which was referred to as ZenMiner. The token that was used represented hash power. Each of the coins they had was meant to represent the hash power that is on the Bitcoin network. Additionally, it would be able to give the users a corresponding block reward for serving as the dividends.
That is not all as users were also able to trade the coins on an open market; thus, they were able to have their own kind of value. The concept was considered to be novel by many, but it seems very obvious that some of the hash power the company had claimed to be having did not actually exist, and some of the payments that have been made to users was not coming from there bitcoin mining, instead it was coming straight from the new GAW customers.
It was a classic Ponzi scheme that was able to go on for a while until customers started to note late payments being made, and from here they went ahead to complain. It is at this point that Garza and the GAW Miners went ahead to launch the next phase they had in place for the scheme, which is Paycoin.
What To Know About Paycoin?
Paycoin had been promised to launch with about $20 floor, and the presale price of the token was a little lower than that. As a result, many investors saw it as a can’t miss investment opportunity, not to mention, the Wall Street Journal had even gone ahead to hype the token on their Money Beat Blog. All waited for the launch, and when it finally happened the $20 floor never got to materialize, instead, the price of the token quickly tanked.
The token had promised a list of solutions which included having a gradual buyback, which could have actually taken a decade for them to payback. The buyback plan didn’t get going plus the hyped partnership, which later proved to be false.
The Plea Agreement
According to the plea agreement Garza could face 20 years in federal prison, but it seems to be unlikely. Instead, the court considers multiple factors; this is from the amount that was stolen, the fact he was the mastermind, the number of victims in the scam and also that he admitted to guilt. With all these factors incorporated it gave him an offence level of about 26 and a criminal history level of one.
What all this means is that the prosecuting attorney was actually recommending that he be sentenced for about 63 to 78 months and have a fine of $25,000 to $250,000 plus an additional one to three years supervised probation.
Additionally, Garza has gone ahead to agree to pay about $9million in the restitution. Unfortunately, the judge is not bound to the recommendation that has been presented and could, therefore, give Garza a little bit more prison time than that. The sentencing date has been set for September 13th, something to look out for.