Garza Pleads Guilty: GAW Miners CEO Cops to $9 Million Fraud

A notorious cryptocurrency executive pleaded guilty to a count of wire fraud on Thursday. He now faces up to 20 years in prison.

Jul 20, 2017 at 7:20 p.m. UTC
Updated Sep 11, 2021 at 1:33 p.m. UTC

Controversial cryptocurrency executive Josh Garza has pleaded guilty to one count of wire fraud.

As reported by CoinDesk earlier this week, Garza was rumored to have been preparing the plea, one for charges that stem from his operation of four cryptocurrency companies, GAW, GAW Miners, ZenMiner and ZenCloud, all of which were long suspected of fraudulent activities.

In total, the loss attributed to Garza's fraud was estimated at $9,182,000. He is now set to be sentenced on October 12, at which time he will face up to 20 years in prison.

Still, that isn't likely to be the last of the case against the executive, one known for attending conferences with body guards and other bizarre stunts that set off community alarm.

A separate case against Garza for securities fraud, brought by the SEC, is still ongoing, with the agency still gathering evidence until this August. That case could still be settled out of court.

But while unrelated, today's filing touched on the specifics of that case, with the wording singling out the company's sale of mining equipment and describing its operations in a manner similar to a Ponzi scheme.

The U.S. Department of Justice notice, for instance, stressed that Garza's companies defrauded consumers by routinely making false claims about how their products operated, and the state of their business dealings.

Further, it called attention to GAW's hashlet products, a type of virtual mining product that law enforcement officials allege was actually an investment product.

GAW's business collapsed in 2015 and is no longer operational.

https://www.coindesk.com/gaw-miners-paycoin-disappearing-20-floor/

Legal image via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
Bitcoin Miner Argo Blockchain Emerged Unscathed From Its UST Stake

The company said it was able to sell its minimal UST stake for around 93 cents per token before the price completely collapsed.

The company said it was able to sell its minimal UST stake for around 93 cents per token before the price completely collapsed.

2
Binance Seeking ‘Ideal Point’ for India Launch

Increased hiring, active consultations and monitoring of the regulatory environment by the exchange suggest Indian operations may soon be underway.

Increased hiring, active consultations and monitoring of the regulatory environment by the exchange suggest Indian operations may soon be underway.

3
The Rosetta Stone of Passwords, Return to the ‘Fappening’

The best and brightest people can make truly stupid decisions and terrible predictions. What can we learn from them?

The best and brightest people can make truly stupid decisions and terrible predictions. What can we learn from them?

4
A16z Launches First Gaming Fund With $600M Commitment

The venture capital giant will invest in game studios, apps and infrastructure.

The venture capital giant will invest in game studios, apps and infrastructure.