U.S. man pleads guilty to $630,000 bitcoin fraud

Austin Nedved, a resident of the U.S. city of Northborough, pleaded guilty in a case involving fraud and money laundering through the p2p platforms Paxful and LocalBitcoins. The scheme targeted senior citizens and brought the man and his associates more than $630,000, the U.S. Justice Department said.

Nedved bought and sold bitcoins for cash he received from victims of the fraudulent schemes. According to the agency, there were two possible options for the scam.

The first involved supposedly winning the lottery. Fees or fees had to be paid to transfer the funds. In the second case, people became victims of romantic scams.

In June 2018, Nedved helped a 78-year-old woman exchange $100,000 for bitcoin optimizer to help her potential fiancé with her oil business. Days later, accomplices stole another $40,000 from the victim.

Authorities charged the man with aiding and abetting fraud and conspiracy to launder money. Each of the episodes carries up to 20 years in prison and large fines. The court will sentence Nedved on April 7, 2021.

As a reminder, one of the creators of the cryptocurrency project Centra Tech, Robert Joseph Farkas, received a year in prison and a $250,000 fine for setting up a fraudulent ICO.