The GAW miners crypto case has come to a close with the CEO being sentenced to 21 months in prison. The judgment which was passed on Thursday in Hartford, Connecticut brings an end to a saga that has been running for years since 2014.
Garza, the GAW CEO pled guilty of wire fraud charges and expressed remorse for his action. Now, as part of the sentence, he will serve six months home confinement and 3 years of supervised release. The court proceedings saw many customers of the defunct company read statements on their experiences with the company.
GAW problems started in 2014 when many disgruntled observers and also customers of the company accused it of acting as a Ponzi scheme by selling more crypto mining processing power than it possessed. At the time GAW also released a crypto coin called Paycoin which Garza strongly endorsed saying it would become the dominant global online currency.
The crypto coin was launched with a floor price of $20 but didn’t last as it eventually failed due to pump and dump tactics that Garza had decried when launching it.
Initially, GAW served as a distributor and reseller of mining equipment before moving into the hosted mining business. This meant the company was purchasing and operating mining machines on behalf of its customers.
In the latter months of 2014, the company began pitching Hashlet, a mining power product that it sold through an in-house marketplace. It’s around this time that skepticism about the company’s mining operations began to grow.
In February of 2015, CoinFire reported that leaked emails from the company had shown an ongoing SEC inquiry which Garza denied. It the same emails which revealed the company had sold more mining power than it had actually possessed.
In December of 2015, the SEC sued Garza for unlicensed sale of securities and running what they deemed a Ponzi scheme.
With the close of GAW miners crypto case, at least justice has been served.
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