Crypto Scammer Pleads Guilty in $13M Ponzi Scheme

A key figure behind a massive $13 million crypto Ponzi scheme has just pleaded guilty. Vincent Anthony Mazzotta Jr admitted to money laundering and conspiracy to obstruct justice — charges that carry up to 15 years in prison 🔒.

This case highlights the growing threat of crypto scams that exploit hype around AI trading bots and fake firms to lure in unsuspecting investors.

🤖 Fake AI Bots and Phantom Profits

According to the U.S. Department of Justice, Mazzotta and his co-conspirators promised victims high yields from AI-powered crypto trading bots. In reality, the firms were fake, and investors’ funds were used for luxury lifestyles — not trading 🛩️🏝️.

The scammers created false firms like:

Mind Capital
Cloud9Capital
Circle Society
Bitcoin Wealth Management
Omicron Trust

🏛️ A Fake U.S. Agency?

Mazzotta even helped set up a fake federal agency — the Federal Crypto Reserve — to further defraud victims. The so-called agency claimed to investigate the same firms that had “disappeared” with investors’ funds. Victims were charged thousands of dollars in fake fees 💸.

🔥 Lavish Lifestyle at Victims’ Expense

From private jets to luxury hotels, Mazzotta and his team used investor funds for:

Charter flights
Mansion rentals
Personal chefs
Private security

They even used crypto mixers to hide the money trail 🧼🔗.

🎭 Hidden Identities

To dodge authorities, the scammers used aliases:

Mazzotta: “Anthony”, “Delta Prime”, “Director Vinchenzo”
David Saffron (co-defendant): “Bitcoin Yoda”, “The Blue Wizard”, “David Gilbert”

Mazzotta later attempted to destroy evidence — including an iPad — after Saffron’s indictment in 2022.

⚖️ What Happens Next?

Mazzotta has pleaded guilty and awaits sentencing. Meanwhile, Saffron — still behind bars — is set to face trial on September 16. He’s charged with multiple counts of wire fraud, money laundering, and obstruction of justice.