- Magdaleno Mendoza, promoter for IcomTech, received a 71-month federal prison sentence for operating a crypto Ponzi scheme.
- The scheme targeted Spanish-speaking, working-class investors with false promises of guaranteed daily returns from cryptocurrency trading and mining.
- Mendoza must pay over $789,000 in restitution and forfeit $1.5 million, including property acquired through fraud proceeds.
- This conviction follows a 10-year prison sentence for IcomTech’s founder, as authorities warn of ongoing global high-yield crypto Scams.
- Illicit activities in the crypto sector caused a reported $40.9 billion in global losses, with schemes like Smart Business Corp targeting investors for over a decade.
Magdaleno Mendoza, a senior promoter of the cryptocurrency platform IcomTech, was sentenced to nearly six years in federal prison for defrauding investors through a fraudulent crypto-mining and trading operation, authorities announced. The sentencing took place in the Southern District of New York following charges that Mendoza misled working-class, Spanish-speaking investors with offers of guaranteed daily returns.
Launched in 2018, IcomTech collapsed by the end of 2019. According to the U.S. Attorney’s Office, the platform promised high returns from cryptocurrency trading and mining but operated as a Ponzi scheme, paying earlier investors with new investors’ funds and enriching its promoters. Many investors were unable to withdraw their money. The court also ordered Mendoza to pay approximately $789,219 in restitution and to forfeit about $1.5 million in assets, including a home in Downey, California, purchased with the proceeds of fraud (announced).
This ruling marks the second major conviction related to the case. Last year, David Carmona, founder of IcomTech, was sentenced to 121 months (over 10 years) in federal prison after he pleaded guilty to conspiracy to commit wire fraud (sentenced).
Crypto crimes continue to threaten investors worldwide. According to the 2025 Crypto Crime Report by Chainalysis, illegal activity in the crypto world led to estimated losses of $40.9 billion (stated). Ongoing high-yield investment scams, such as Smart Business Corp, have targeted Spanish-speaking countries for over ten years. Despite warnings from Mexico’s consumer protection agency CONDUSEF that Smart Business Corp was not authorized to sell securities, the scheme received roughly $1.5 billion in on-chain funds as of 2022.
The events highlight continued risks for investors as high-yield crypto schemes persist globally, even as digital asset adoption increases.
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