US charges Argyle Coin founder with $25 million fraud

Federal prosecutors in the Southern District of Florida have charged a 51-year-old resident of Washington with fraud. According to a press release from the Department of Justice, he created a pyramid scheme and launched a cryptocurrency asset allegedly backed by diamonds.

From 2014 to 2019, Jose Angel Aman and associates offered US and Canadian investors the opportunity to invest in the purchase of uncut diamonds. They allegedly cut and resold them at a markup.

The scheme organizers claimed that the deal was high-yield and safe — investments were backed by Aman’s diamond reserves worth $25 million. Interest was paid out of money contributed by new participants in the scheme.

When the cycle began to falter, Aman began seeking funds for Argyle Coin. He presented the project as a diamond-backed cryptocurrency asset. The funds invested in it were paid to early investors as interest.

“Using a Ponzi scheme, Aman and his co-conspirators raised more than $25 million from hundreds of investors. He used the money to pay interest, cover business expenses, pay commissions to partners, and maintain his own luxurious lifestyle,” the statement said.

In May 2019, the U.S. District Court for the Southern District of Florida granted the SEC’s request for a temporary restraining order and asset freeze against Aman and Argyle Coin.

Then the SEC said that the entities tied to Aman unlawfully siphoned off more than $10 million. The man leased a house, bought horses, and paid for horseback-riding lessons for his son.

In September, BitClub Network mining-pool organizer Joseph Frank Abel pleaded guilty to fraud totaling $722 million. He faces imprisonment and substantial fines for this crime and related tax fraud charges.

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