Arizona man Vincent Anthony Mazzotta Jr. pleaded responsible to cash laundering and conspiracy to hinder justice on Monday for his position in orchestrating a $13 million crypto Ponzi scheme, a brand new press launch from the Division of Justice (DOJ) states.
Arizona man pleads responsible to cash laundering expenses associated to Ponzi scheme that resulted in $13 million in investor losses https://t.co/lYXNDkr7M2
— US Legal professional L.A. (@USAO_LosAngeles) July 28, 2025
Arizona Man Pleads Responsible in $13M Crypto Fraud
Based on the July 28 press launch, the one-time Los Angeles resident and his co-defendant, David Saffron, fraudulently promised high-yield crypto-trading returns from investments in firms corresponding to Thoughts Capital and Cloud9Capital, amongst others.
The duo even went as far as to create a company known as the Federal Crypto Reserve (FCR), a pretend entity that solicited hundreds of {dollars} from victims of the rip-off underneath the guise of “investigating” the crypto firms concerned within the scheme.
Between FCR and the opposite fraudulent crypto investments, Saffron and Mazzotta defrauded victims out of $13 million.
“Vincent Mazzotta defrauded traders in a complicated cryptocurrency scheme after which doubled down through the use of a pretend authorities entity to additional victimize those that had entrusted him with their cash,” mentioned Appearing Assistant Legal professional Common Matthew R. Galeotti of the Justice Division’s Legal Division.
“Combating fraud in digital belongings is crucial to the Legal Division’s efforts to vindicate victims’ pursuits and to maintain unhealthy actors out of the crypto markets,” he added.
Co-Conspirators Tried to Destroy Proof After Arrest
Following Saffron’s arrest, Mazzotta and a number of other different unnamed co-conspirators tried to “conceal and destroy proof” stemming from the crime, together with an iPad and objects in a private secure.
“Mazzotta additionally conspired to falsify the data of his enterprise, Runway Magnificence Inc., to hide his involvement within the funding fraud scheme from a federal grand jury,” the press launch states.
Mazzotta, who’s slated to be sentenced on December 15, is going through as much as a complete of 15 years behind bars for the digital asset rip-off.
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