AirBit Club Executives Plead Guilty to Fraud Charges in the US After Being Flagged as a Scam by Philippine SEC in 2018

Time Stamp: March 13, 2023 5:04 AM
Source Node: 2513289

The AirBit Club, a purported cryptocurrency investment platform, has recently been in the news after its executives pleaded guilty to fraud charges in the United States. The charges stem from a 2018 investigation by the Philippine Securities and Exchange Commission (SEC) which flagged the company as a scam.

The AirBit Club was founded in 2017 and promised investors high returns on their investments. It claimed to be a legitimate cryptocurrency trading platform and had offices in the Philippines, Thailand, and the United States. However, the SEC investigation revealed that the company was actually a Ponzi scheme. It was found to be using new investor funds to pay off existing investors, while the company’s executives pocketed the rest.

The SEC investigation resulted in the arrest of three AirBit Club executives in 2018. The executives were charged with fraud and money laundering and have now pleaded guilty in a US court. The executives have agreed to pay back the money they stole from investors, as well as a fine of $2.5 million.

The AirBit Club case is a reminder of the risks associated with investing in cryptocurrencies. While there are legitimate cryptocurrency investment opportunities, there are also many scams out there. Investors should always do their due diligence before investing in any cryptocurrency-related venture. They should also be aware of potential red flags, such as promises of guaranteed returns or companies that are not registered with the SEC.

In addition, investors should be aware of the potential for fraud in the cryptocurrency market. As the AirBit Club case shows, it is important to be vigilant when investing in cryptocurrencies and to be aware of potential scams. By doing so, investors can help protect themselves from becoming victims of fraud.