A Houston man has pleaded guilty to operating a fraudulent cryptocurrency investment scheme, according to an announcement from U.S. Attorney Nicholas J. Ganjei.
Samuel Ayala-Ibarra, 45, admitted that between July and November 2017 he ran JASTBITME, a company based in Houston that falsely promised investors high returns through cryptocurrency investments. Instead of investing client funds as promised, Ayala-Ibarra used the money for personal expenses and to pay earlier investors. He also paid others to recruit new clients into the scheme.
JASTBITME provided fake documents showing fabricated growth and returns to persuade clients to reinvest their money. Many victims never received back their original investments or the returns they were promised.
Sentencing is scheduled for Nov. 3 before Senior U.S. District Judge Kenneth M. Hoyt. Ayala-Ibarra faces up to 20 years in federal prison and a possible $250,000 fine for each of three counts of wire fraud.
Ayala-Ibarra remains in custody pending sentencing.
The investigation was conducted by the Secret Service. Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case, while Assistant U.S. Attorney Kristine Rollinson is handling seizure and forfeiture matters.
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