Get Latest Articles to Your Inbox Every time a new topic trends on the Internet, scammers take advantage of it.You must have heard of Bitcoin and how in recent days it has made some early investors millionaire overnight.Yes, the Bitcoin boom is back, and it's real — a digital currency that has just crossed a new milestone today.The current price of 1 BTC or 1 Bitcoin = US$2,850.An American con man took advantage of this boom in Bitcoin market to run bogus bitcoin mining schemes and earn millions of dollars.But the bogus schemes ended as the United States Securities and Exchange Commission (SEC) has won a legal battle against two bogus, but now defunct, Bitcoin companies operated by Homero Joshua Garza — GAW Miners and ZenMiner.Garza is now facing a $12 Million (£9.2 Million) penalty for running the bogus schemes – what lawmakers have certified was a "Ponzi scheme."According to the SEC, Garza used the "lure of quick riches" in order to get people to invest in the bitcoin mining schemes, which means those who add their computing power to help verify transactions, a practice known as mining, are rewarded with Bitcoins.

Garza's GAW Miners and ZenMiner purported to provide shares in cloud-based Bitcoin mining machinery, but nothing like that was ever built by the operator.Garza told investors that he had enough computing power to mine a lot of bitcoins on their behalf and share the proceeds, but in reality, he just used cash from new investors to reward earlier joiners, which is nothing but a fraudulent "ponzi" scheme, according to the SEC.The SEC said: "Most investors paid for a share of computing power that never existed."It also said that about 10,000 investors joined the bogus schemes and handed over $20 Million to Garza.Few got back their money they invested, but many left without a single penny.The complaint against the Bitcoin mining schemes was filed on 1 December 2015, and on June 2, the US District of Connecticut federal court sided with the SEC, ordering both GAW Miners and ZenMiner to pay a combined of $10,384,099 in disgorgement and prejudgment interest, along with $1,000,000 in damages.Both GAW Miners and ZenMiner companies have now been shut down.

However, a ruling is yet to be made on the Bitcoin funds collected by Garza.In 2014, when Garza was running the bogus schemes from his home in Connecticut, 1 BTC was equal to $450, and today it is around $2,800.So, the $20 Million funds Garza took from the investors today worth around $150 million.Best Deals Subscribe Want the most interesting Hacking and Cyber Security News delivered automatically to your inbox?Subscribe to our FREE Newsletter and eBooks.“Great condition, perfectly hashing along and can be overclocked in BFGMiner which I recommend.” Quantity: 10 sold Please enter a quantity of $qty_dummy$ or less Please enter a quantity of 1 Purchases are limited to $qty_dummy$ per buyer Please enter quantity of 1 or more Please enter a lower number Choose quantity that is less than $qty_dummy1$ or equal to $qty_dummy$ You can only choose quantity that is equal to $qty_dummy$ United States, Canada See exclusions Apply Now - opens in a new window or tab | See terms - opens in a new window or tab See payment details Any international shipping is paid in part to Pitney Bowes Inc.

Learn More- opens in a new window or tab International shipping and import charges paid to Pitney Bowes Inc.Learn More- opens in a new window or tab Any international shipping and import charges are paid in part to Pitney Bowes Inc.Learn More- opens in a new window or tab International shipping paid to Pitney Bowes Inc.Learn More- opens in a new window or tab Any international shipping is paid in part to Pitney Bowes Inc.Learn More- opens in a new window or tab | See details | See details - opens in a new window or tab Get the item you ordered or get your money back.bitcoin edmwCovers your purchase price and original shipping.bitcoin eroidsTwo Bitcoin mining companies have received orders to each pay a $10 million penalty for conducting a Ponzi scheme orchestrated by their principal.bitcoin fail

On 2 June 2017, the U.S.District Court for the District of Connecticut issued its judgment against two Connecticut-based companies, GAW Miners, LLC and ZenMiner, LLC, that cooperated with their principal Homero Joshua Garza in perpetrating a Ponzi scheme against investors.For having violated Sections 5 and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, GAW Miners and ZenMiner must each pay $10,384,099 in in disgorgement and prejudgment interest.bitcoin gladiaThe two companies, which have ceased their former business operations, will also each pay a civil penalty of one million dollars.bitcoin festplatte weggeworfenThe Securities and Exchange Commission first filed a complaint (PDF) against the companies in December 2015 when it learned of their conspiracy to defraud investors.bitcoin generator skynova

Between August 2014 and December 2014, Garza sold $20 million of shares in a digital mining contract to more than 10,000 investors.The contract entitled investors to a share of the returns generated by GAW Miners’ and ZenMiner’s Bitcoin mining activities.In actuality, the companies sold more computing power than they actually owned.As a result, Garza paid a reduced value of “returns” over time to the investors using money he collected from other investors.Paul G. Levenson, director of the SEC’s Boston regional office, sums up the plot in a SEC press release: “As alleged in our complaint, Garza and his companies cloaked their scheme in technological sophistication and jargon, but the fraud was simple at its core: they sold what they did not own, misrepresented what they were selling, and robbed one investor to pay another.” Most if not all of the investors never received the full amount of their investments.Few even made a profit.Bitcoin is a preferred method of payment for digital actors when it comes to launching ransom-based attacks.