US District Court of Connecticut Grants GAW Miners’ Investors a Class Action Status
A new developing story in the case of Bitcoin mining firm, GAW Miners LLC., has come to light as Judge Michael P. Shea wrote for the U.S. District Court for the District of Connecticut. The judge ruled that the GAW Miners investors can raise a class action against the co-owner of the company. The report on the case claims the investors can “pursue securities frauds claim” on the co-founder.
HOMERO JOSHUA GARZA, the founder of GAW Miners LLC, a former resident of Sommers, Connecticut, now living in Texas, was sentenced to 21 months in prison in September 2018 for defrauding the investors off $9 million USD and the illegal purchase of cryptocurrencies using the firm’s funds.
“Between approximately May 2014 and January 2015, GARZA, through GAW, GAW Miners, ZenMiner, and ZenCloud, companies he founded and operated, defrauded victims out of money in connection with the procurement of virtual currency on their behalf.” –
Department of Justice, U.S. Attorney’s Office – Connecticut
The recent decision from the District of Connecticut will allow the 220,000 investors, who completed over 33 million transactions on the platform, to raise a class action on the co-founder of the GAW Miners LLC. The company asked investors to invest in computing power and share profits in the mining pool. The companies sold miners, access to miners, and the right to purchase a virtual currency called PayCoin, as well as “hashlets.”
GAW Miners mining station (Image: Bitsonline)
However, the investors’ money was not used to purchase computing power to mine but rather was offered to earlier investors, much like a Ponzi scheme. This is against the U.S Securities and Exchange Act, which categorizes this action as securities fraud. The U.S. District Court for the District of Connecticut has given the parties involved in the case 10 days, till the 5th of July, to bring their class act forward.