Instagram blogger accused of $ 2.5 million in bitcoin fraud

The US Department of Justice has indicted the owner of the popular Instagram account under the nickname Jay Mazini of stealing $ 2.5 million worth of bitcoins from subscribers.

Mazini (real name Jegar Igbar) became famous for “giving cash” in exchange for cryptocurrency. More than 1 million people have subscribed to his account.

According to the indictment, in the period from January to February 2021, Igbara offered to redeem bitcoins from users at a price that exceeded the market price by 3.5-5 %%.

For example, on February 14, he “bought” BTC at $ 52,500 per coin, while the average cryptocurrency rate did not exceed $ 47,000.

The attacker explained that the offer was non-standard by the fact that cryptocurrency exchanges limit the amount of bitcoins that he can buy.

In exchange, Igbar sent fake payment receipts to subscribers. In fact, the victims either received an incomplete agreed amount, or were left without money at all.

According to a complaint filed with the Brooklyn Federal Court on March 23, one of Jay Mazini’s followers sent him 50 BTC in the hope of receiving $ 2.56 million for them. In return, the “seller” sent him only $ 500,000.

For the period of pre-trial proceedings, Igbaru was arrested. He faces up to 20 years in prison.

We will remind, in March, charges of fraud and money laundering were brought against the entrepreneur John McAfee on seven counts. He faces imprisonment for up to one hundred years . McAfee was arrested in Spain in October 2020 and is awaiting extradition to the United States.

McAfee himself considered the accusations of the US authorities “exaggerated” , and also compared them with “an attack on all cryptocurrencies .

Leave a comment