CEO of cryptocurrency company GAW Miners, Homero Garza was sentenced to 21 months in prison. The Creator of scamway cryptocurrency PayCoin (XPY) will be released in 2021.
In addition to jail, Garza will have to compensate investors losses in the amount of $9.2 million. Prosecutors had requested a penalty of imprisonment for a term of 20 years, therefore, Homero got off with light fright.
Company GAW Miners was founded in 2014 in Connecticut (USA) and specialized in the production and sale of equipment for mining cryptocurrency. The company has developed an ASIC miner GAW Miners Furythat extract multiple virtual currencies and GAW Miners Hashlet for cloud mining. In 2014, the developers released a digital asset PayCoinbased on the hashing algorithm SHA-256 protocols, and blockchain proof of work and proof of stake. The leadership of the GAW Miners guaranteed investors a minimum rate of coins $20, however, the maximum value of PayCoin was only $15.92.
In 2015, there were doubts about the reliability of the company, GAW Miners suspected of creating a financial pyramid and filed formal fraud charges in 2016.