iComTech was one of the numerous fraudulent MLM schemes that used cryptocurrencies as a means of fraud in parallel with the crypto hype of 2017/18. David Carmora started IcomTech in approximately 2018. The scheme promised to earn its victims high profits and guaranteed daily returns that would double their money within six months. Carmora received a sentence of 121 months in prison.
Key Points:
- David Carmona, founder of crypto MLM scam IcomTech was sentenced to 121 months in prison for running a crypto Ponzi scheme.
- The scheme promised working-class victims financial freedom through cryptocurrency trading and mining.
- Victims lost their investments, while Carmona and co-promoters enriched themselves through fraudulent means.
Short Narrative:
David Carmona, the mastermind behind IcomTech, a fraudulent crypto Ponzi scheme, has been sentenced to over 10 years in federal prison. U.S. District Judge Jennifer L. Rochon handed down the sentence on October 4, 2024. IcomTech, which operated between 2018 and 2019, targeted working-class individuals with promises of guaranteed daily returns and doubled investments within six months. However, instead of investing in crypto mining and trading as promised, Carmona and his associates used the funds to pay earlier victims and finance their own luxury lifestyles.
Read our reports on IcomTech here.
Carmona and his team traveled across the U.S. and abroad, hosting flashy expos and community events to lure in more victims. These events, characterized by the display of wealth—expensive cars and designer clothes—created a false image of success. Victims invested through cash, checks, wire transfers, and cryptocurrency, only to watch their supposed profits accumulate on a fake online portal. Withdrawals were impossible for most, and by the end of 2019, IcomTech collapsed, leaving victims with nothing.
Actionable Insight:
This case highlights the critical need for vigilance in the cryptocurrency space. IcomTech was just one of many crypto MLM scams that defrauded tens of thousands of naive victims. Regulators and investors alike must scrutinize such schemes and avoid falling prey to similar scams.
Call for Information:
If you have any information about fraudulent crypto, or MLM schemes or other forms of scams, please share it with us via our whistleblower system, Whistle42.
