During a court session on December 2, held in the Southern District of New York, David Brend was handed a 120-month sentence by Judge Jennifer Rochon for his fraudulent cryptocurrency scheme tied to the IcomTech platform.
In addition to the decade-long imprisonment, Brend faces financial penalties, including $40,000 in forfeiture. He is required to report to prison authorities by December 16.
IcomTech, posing as a legitimate cryptocurrency mining and trading firm, orchestrated a scheme that defrauded thousands of investors of over $8 million between 2018 and 2019.
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Brend, along with other promoters, traveled across the nation to market the platform’s investment opportunities, promising “financial freedom” to potential investors. Instead of engaging in genuine business activities, the company utilized funds from new participants to pay returns to earlier investors—a classic Ponzi scheme tactic.
The promoters diverted large portions of the victims’ funds for personal enrichment, including luxury purchases and real estate acquisitions. According to the US Attorney’s office, they withdrew large sums as cash and spent money on promotional events to further the deceptive enterprise.
Meanwhile, Gustavo Rodriguez, another figure in the fraud and the designer of IcomTech’s website, received an eight-year sentence approximately a month before Brend’s sentencing.
The sentencing of IcomTech’s promoter shows the growing scrutiny around cryptocurrency’s darker side. Meanwhile, Roger Ver, known as “Bitcoin Jesus,” is making headlines by challenging tax evasion allegations. How did the case unfold? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
