Home / Crypto Currency / GAW Miners’s Josh Garza Gets 21-Month Prison Term for Defrauding $9.2 Million

GAW Miners’s Josh Garza Gets 21-Month Prison Term for Defrauding $9.2 Million



A former cryptocurrency entrepreneur will spend time behind the bars of a Federal prison after pleading guilty to defrauding customers of $9.2 million.

According to court documents, Hartford Federal Court sentenced Homera Joshua Garza, 33, the former CEO of a now-defunct GAW Miners mining company, to a statutory minimum of 21 months in a federal corrections facility. Joshua Garza pleaded guilty in April 2017 to one felony count of wire fraud related to the sale of cryptocurrency called PayCoin.

The court initially set a maximum prison sentence cap of 20 years for Garza in July last year – but Judge Robert Chatigny reduced it on account of the convict’s agreement – and a subsequent procession – of repaying customers $9.2 million in recovery. After Garza comes out of prison in 2021, he will further face a six-month home confinement and three years of supervised release.

The hearing saw attendance from several GAW Miners victimized customers who stood witness against Garza’s malicious schemes under oath. Mousetrapped, Garza expressed remorse for his actions and gave himself to the mercy of the law – after denying the charges for more than three years.

GAW Miners’ History in Court

The outcome of the GAW Miners case comes after a long legal battle that began in 2014 after the company started selling more mining power than it formerly possessed. By then, Garza’s schemey brainchild was already raking in hundreds of thousands of dollars for the promise of adding more mining power to its crypto-mining facility, eventually earning itself a “Ponzi Scheme” status inside the crypto-community.

Amidst the ongoing backlash, Garza also launched PayCoin, a payment cryptocurrency whose value would not go below $20. Investors would flock in promise for a stable coin when, in reality, nothing of value would back the asset. At one time, PayCoin was among the top 10 cryptocurrencies by market cap. At a later time, its value got dropped below $2.

The US Justice Department had featured PayCoin in its lawsuit against Garza and his associated companies which included GAW, GAW Miners, ZenMiner, and ZenCloud.

“The companies sold miners, access to miners, and the right to purchase a virtual currency called “Paycoin,” as well as “hashlets,” the department had found.

GAW Miners and Zenminers sold hashlets as tokens that would offer its holders a slice from the revenue made through the companies’ mining operations. The US Securities and Exchange Commission took notice of a manifest regulatory disregard and filed a $12 million lawsuit against GAW Miners and Zen Miners for selling unregulated “securities.”

Garza will begin the prison term on Jan. 4, 2019.

Featured image from Shutterstock.

Follow us on Telegram or subscribe to our newsletter here.
Join CCN's crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Hacked.com? Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.
Read more

Check Also

Bitcoin Cash Price Gets Skewed due to Exchange Trickery

A lot of confusing action is taking place where the Bitcoin Cash price is concerned. Although its actual decline in value is quite obvious for everyone to see, the real price of BCH is not necessarily what people can see on Coinmarketcap. This is primarily because numerous exchanges treat BCHABC as Bitcoin Cash already despite nothing being decided in terms of which chain will be the longest. Bitcoin Cash Value Fluctuates Heavily Depending on where traders look at, the price of Bitcoin Cash will be either close to the $400 level or down to $250-ish. That is quite a large gap between prices, yet one that is also very easy to explain. Bitcoin Cash, as people knew it before the fork, no longer exists. Most professional exchanges have also retired this price ticker, for the time being. As the hash war rages on, there are still a lot of unknown factors waiting to be addressed. Despite this ongoing kerfuffle, there is a net 5.76% decrease in the Bitcoin Cash price, and a 5.4% decline over Bitcoin. More specifically, that is what CoinMarketCap reports at this time, although this is not necessarily the case whatsoever. In fact, some exchanges are clearly jumping the gun by labeling BCHABC as BCH and thus dragging the Bitcoin Cash price down a bit more. Exchanges currently engaging in this activity include Bittrex and Coinex, neither of which plays a big role of importance when it comes to trading. However, based on the current value of BCH on Bitfinex and Gate.io, it seems a similar incident is taking place. One also has to keep in mind Bitcoin Cash was getting battered ahead of the network split as well. Most exchanges have halted trading of BCH indefinitely, primarily because the currency no longer exists. It is evident either BCHABC or BCHSV will take over that name in the future, but nothing has been decided at this point. As such, any trading referring to just “Bitcoin Cash” or “BCH” should be avoided, as most users can never be sure which currency is effectively being traded under this name. All of this skews the picture pertaining to Bitcoin Cash altogether. Coinmarketcap reports there is still $392m in trading volume for BCH, even though that is virtually impossible right now. With so many exchanges freezing deposits and withdrawals, it is evident actual BCH trading is no longer possible whatsoever. Virtually all platforms have deposits of BCHSV and BCHABC frozen as well, which only makes this market trend more confusing. It is safe to say the entire network split has been a bit of a mess first and foremost. In the case of Bitcoin Cash itself, that name will – under the current circumstances- not be used across exchanges for much longer. Instead, the two separate camps need to be treated as such first and foremost. Until things settle down – with might not necessarily happen anytime soon – the Bitcoin Cash price itself is pretty much irrelevant for most traders and speculators. Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency. The post Bitcoin Cash Price Gets Skewed due to Exchange Trickery appeared first on NullTX.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.