Ponzi Scheme: SEC Posts Final Judgement Against Bitcoin Mining Company Gaw Miners & ZenMiner

The Securities and Exchange Commission has filed its final judgement against Homero Joshua Garza and his two Bitcoin mining companies GAW Miners and ZenMiner.

Garza is liable for $9.182 million for restitution and pre-judgement interest of $742,774. This ends the litigation against Garza with his sentencing scheduled for January 5, 2018. Garza pled guilty to one count of wire fraud earlier this year. His actions were deemed a Ponzi scheme by the enforcement division of the SEC.

The case originally commenced in 2015, when the SEC initially filed their charges against Garza. At that time, the SEC said Garza “robbed one investor to pay another” while cloaking the scheme in “technological sophistication and jargon.”

From August 2014 to December 2014, Garza sold $20 million worth of “shares” in a digital mining contract they labeled “Hashlet.” Over 10,000 individuals were said to have purchased these Hashlets which ended up being digital vapor.

 


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