A former Los Angeles police officer named John DeMarr has plead guilty to felony charges in a $14 million cryptocurrency scam. According to the Department of Justice, DeMarr has admitted to aiding and abetting in the wire fraud of more than $14 million from investors through a series of false statements and misrepresentations.
The scam involves a fraudulent cryptocurrency investment platform known as Bitcoiin2Gen, or B2G, and another investment scheme called Start Options. Both of these platforms were advertised as profitable investment opportunities, but in reality, they were designed to deceive investors and steal their money.
The deceit doesn't stop there. DeMarr conspired with other fraudsters to convince investors that their investments were growing significantly. They did this by providing investors with false reports, showing inflated returns on their investments. However, instead of investing the funds as promised, the group used the money for personal expenses and the purchase of luxury goods.
One of the more notable co-conspirators in this scam is the so-called "crypto godfather" Kristijan Krstic. Krstic has been charged with conspiracy to commit securities fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering. If convicted, he faces a maximum sentence of 20 years in prison for each count.
As part of his plea agreement, DeMarr has agreed to pay restitution to his victims, which will be determined by the court at his sentencing. The maximum penalty for his crime is 20 years in federal prison.
It is worth noting that this is not the first time that DeMarr has been in legal trouble. In the past, he has been accused of civil rights violations while serving as a police officer in Los Angeles. This latest incident is a stark reminder of the potential risks and dangers associated with cryptocurrency investments, particularly when dealing with unscrupulous individuals or companies.