Instagram influencer charged with $2.5m Bitcoin fraud

The United States Department of Justice has charged the owner of a popular Instagram account known as Jay Mazini with wire fraud for taking Bitcoin from followers worth $2.5 million.

Mazini (real name Jegara Igbara) rose to fame for his “cash giveaways” in exchange for cryptocurrency. His account had more than 1 million followers.

According to the indictment, between January and February 2021 Igbara offered to purchase Bitcoin from users at a price 3.5–5% above market.

 

 

 

 

 

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For example, on February 14 he was “buying” BTC at $52,500 per coin, while the cryptocurrency’s average price did not exceed $47,000.

The fraudster explained the unusual nature of the offer by saying that cryptocurrency exchanges cap the amount of Bitcoin he can buy.

In return, Igbara sent subscribers fake payment receipts. In fact, victims either received only part of the agreed amount, or were left with nothing.

According to the complaint, filed with the Federal Court in Brooklyn on March 23, one of Jay Mazini’s followers sent him 50 BTC in exchange for $2.56 million. In return, the “seller” sent only $500,000.

During the pretrial, Igbara was arrested. He faces up to 20 years in prison.

Back in March, entrepreneur John McAfee faced charges of fraud and money laundering on seven counts. He faces a prison sentence of up to one hundred years. McAfee was arrested in Spain in October 2020, and he awaits extradition to the United States.

McAfee ‘overblown’, and compared them with ‘an attack on all cryptocurrencies’.

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