Two fraudsters capitalized on the hype around both cryptocurrency and artificial intelligence, advertising an "artificial intelligence automated trading bot" that they promised would earn large returns for their investors. Instead, however, the fraudsters spent the money on themselves, paying for private chartered jet flights, luxury hotel accommodations, private mansion rentals, a personal chef, and private security guards.In addition to pulling off the original scam, the fraudsters also came up with a fake investigative agency called the "Federal Crypto Reserve", where they directed victims who were seeking to recover their losses.
The scammers were charged with wire fraud, money laundering, and obstruction of justice, which carry hefty maximum prison terms.
