New post Need visibility? Apply for a FREE post for your Startup.  Apply Here

News

Instagram influencer’s crypto scam: Jay Mazini sentenced for $8m ponzi scheme

2 Mins read

There has been a lot of news and updates about different people masking as experts in financial fields just to gain access to people’s pockets. Fraudsters can be very smart and dubious, and also very convincing to the extent that their preys might suspect nothing, instead, they keep throwing their savings at them. One of such incidents is that of the Instagram influencer, Jay Mazini, and his series of flamboyant financial exploitations.

In a stunning fall from digital stardom that seems like something out of a movie, Jay Mazini has been sentenced to seven years in prison. This was as a result of him orchestrating an audacious $8 million cryptocurrency Ponzi scheme targeted at his own Muslim community during the COVID-19 pandemic.

Jebara Igbara, the 28-year-old New Jersey man behind the “Jay Mazini” persona, pleaded guilty to fraud and money laundering charges. He admitted to creating an elaborate online presence depicting a life of wealth and success as a crypto investor to lure in victims.

Prosecutors stated that Igbara shamelessly exploited the economic turmoil of the pandemic to leverage connections within the Muslim community. Through his company Hallal Capital LLC, he convinced investors that their money would earn lucrative returns in stocks, electronics resale, and personal protective equipment.

In reality, Igbara was running a classic Ponzi scheme, using new investors’ funds to pay fake “returns” to earlier participants while funding his own lavish lifestyle of luxury cars and excessive gambling.

He not only created a fake online presence to purport that he was a wealthy crypto investor, he used his Instagram persona as proof of success when convincing his unsuspecting victims to invest in his schemes,” said IRS Criminal Investigation Special Agent Thomas Fattorusso.

Igbara’s Instagram charade reached over 1 million followers through viral videos of him handing out stacks of cash to ordinary people. In one instance, he even appeared alongside rapper 50 Cent, giving the impression of a man so wealthy he could simply give away money.

However, after online sleuths raised fraud allegations in 2020 and Igbara’s arrest on kidnapping charges in 2021, many victims came forward to the FBI. Court documents reveal at least four people were scammed out of over $100,000 in Bitcoin each, including one victim who lost 50 Bitcoin.

Read also: Why does Bitcoin mining consume so much energy? How to reduce the carbon footprint

In addition to his seven-year sentence for fraud, Igbara received a concurrent five-year term for the kidnapping conviction. He was also ordered to pay $10 million in restitution to his victims and personally apologized for his actions in court.

The saga serves as a cautionary tale about the dangers of blindly trusting online influencers and the importance of thorough due diligence, especially in the volatile world of cryptocurrencies.

Don’t miss any tech news ever!

We don’t spam! Read our privacy policy for more info.

882 posts

About author
When I'm not reading about tech, I'm writing about it, or thinking about the next weird food combinations to try. I do all these with my headphones plugged in, and a sticky note on my computer with the words: "The galaxy needs saving, Star Lord."
Articles
Related posts
News

Bitcoin hits new all-time high, hitting $94k amid Trump-era optimism

1 Mins read
Bitcoin has risen to a remarkable high of $94,000, marking a dramatic surge fueled by speculation about potential cryptocurrency-friendly policies and strategic…
News

Logan Paul Faces Crypto Controversy Amid Allegations of Deceptive Promotions

1 Mins read
Social media personality, Logan Paul, is under intense scrutiny after a BBC investigation revealed that he is involved in unethical practices surrounding…
News

Nigerian court orders release of Binance executive after seven months in detention

1 Mins read
Nigeria’s Federal High Court in Abuja has ordered the immediate release of Binance executive, Tigran Gambaryan, following the government’s decision to drop…
Newsletter Subscription

🤞 Don’t miss any update!

We don’t spam! Read more in our privacy policy

Join our Telegram channel here - t.me/TechpadiAfrica

Leave a Reply

×
Startups

Bolt partners M-Kopa to rev up electric motorcycle revolution in Kenya