Miami Crew Leader Sentenced to 63 Months in Prison for Crypto Fraud

A Miami crew leader has been sentenced to 63 months in prison for his role in a cryptocurrency scheme that defrauded U.S. banks of $4 million. Esteban Cabrera Da Corte pleaded guilty to the charges in April of this year and was sentenced by a New York district judge on Wednesday. The scheme involved using fraudulent bank accounts to purchase cryptocurrency, which was then sold for cash.

 

 

Cabrera Da Corte was the leader of a Miami group that was accused of running the crypto scam. The group’s activities came to light in 2019, when the U.S. Department of Justice charged three members of the crew in connection with the scheme. The other two members of the group have also pleaded guilty and are awaiting sentencing.

The case highlights the risks associated with cryptocurrency fraud and the importance of effective law enforcement in combating such crimes. While cryptocurrencies offer many benefits, including fast and low-cost transactions, they are also vulnerable to abuse by criminals. Law enforcement agencies around the world are working to develop strategies to combat cryptocurrency fraud, but the issue remains a significant challenge.

 

Key Takeaways

  • A Miami crew leader has been sentenced to 63 months in prison for his role in a cryptocurrency scheme that defrauded U.S. banks of $4 million.
  • The scheme involved using fraudulent bank accounts to purchase cryptocurrency, which was then sold for cash.
  • The case highlights the risks associated with cryptocurrency fraud and the importance of effective law enforcement in combating such crimes.

 

The Crime and Its Perpetrators

 

The 2020 Scheme to Steal Millions in Crypto

 

In 2020, Esteban Cabrera Da Corte, a 27-year-old Miami resident, along with two other co-conspirators, organized a fraudulent scheme to steal millions of dollars’ worth of cryptocurrency. The scheme involved using personal identifying information of victims to open bank accounts and then use those accounts to purchase cryptocurrency. Once the cryptocurrency was purchased, the group would then initiate fraudulent reversals of the transactions, effectively stealing the cryptocurrency.

The group was successful in defrauding U.S. banks of $4 million worth of cryptocurrency. However, their success was short-lived as they were eventually caught and arrested.

Profiles of Esteban Cabrera Da Corte and Co-Conspirators

 

Esteban Cabrera Da Corte was the leader of the Miami group accused of running the crypto scam. He pleaded guilty to participating in the scheme and was recently sentenced to 63 months in prison by a New York district judge.

The other two co-conspirators were also arrested and charged. They were identified as Hernandez, 23, and Ramirez, 34, both of Miami, Florida. They were charged with conspiracy to commit wire fraud and bank fraud, wire fraud, and aggravated identity theft. If convicted, they could face up to 30 years in prison for the wire fraud charge and a mandatory minimum sentence of 2 years for the aggravated identity theft charge.

Prosecutors stated that the group’s fraudulent scheme involved using personal identifying information of victims to open bank accounts, which were then used to purchase cryptocurrency. Once the cryptocurrency was purchased, the group would initiate fraudulent reversals of the transactions, effectively stealing the cryptocurrency.

In conclusion, the group’s fraudulent scheme to steal millions of dollars’ worth of cryptocurrency was a sophisticated operation that took advantage of unsuspecting victims. The successful prosecution and sentencing of Esteban Cabrera Da Corte and his co-conspirators send a clear message that fraudulent activities involving cryptocurrency will not be tolerated by law enforcement authorities.

Legal Proceedings and Sentencing

 

The Role of U.S. Law Enforcement Agencies

 

The Miami Crew Leader Sentenced to 63 Months in Prison for Crypto Fraud was a result of the joint investigation by the U.S. Secret Service, the FBI Miami, and the Miami-Dade Police Department. The investigation was part of the El Dorado Task Force, which is a task force that focuses on investigating financial crimes in the Southern District of Florida. The Homeland Security Investigations and the Florida Office of Financial Regulation also played a role in the investigation.

 

Court Rulings and Sentencing Details

 

The New York District Judge sentenced the Miami Crew Leader to 63 months in prison for organizing a scheme to steal millions of dollars’ worth of cryptocurrency from victims. The Miami Crew Leader pleaded guilty to defrauding U.S. banks and cryptocurrency exchange of more than $4 million. The Miami Crew Leader also agreed to pay restitution of $3,578,786.69 and forfeiture of $1,200,000.

The court documents showed that the Miami Crew Leader was involved in a 2020 scheme where he and his co-conspirators used social media to trick victims into sending them cryptocurrency. The Miami Crew Leader and his co-conspirators promised the victims high returns on their investments but did not deliver on their promises.

The Miami Crew Leader was indicted by the federal grand jury on multiple charges, including wire fraud, bank fraud, and conspiracy to commit money laundering and transnational criminal enterprises. The Cyber Crimes Investigative Unit and the Asset Forfeiture and Money Laundering Section of the U.S. Department of Justice also played a role in the indictment.

The sentencing of the Miami Crew Leader is part of the crackdown by U.S. lawmakers on bad actors in the cryptocurrency space. The Miami Crew Leader’s sentence sends a clear message to those who engage in fraudulent activities in the cryptocurrency space that they will face severe consequences.

By Jeff Reed

Jeff is a renowned cryptocurrency expert and thought leader with over a decade of experience in the field. As a pioneer in blockchain technology and digital currencies, Jeff has been instrumental in shaping the crypto landscape. His deep understanding of market dynamics, regulatory frameworks, and technological advancements positions him as a trusted authority in the crypto community. Jeff's insights are regularly featured in leading financial publications, and he is a sought-after speaker at global tech and finance conferences. His commitment to sharing knowledge and promoting innovation in the crypto space reflects his dedication to both expertise and trustworthiness.

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