12 August 2021 16:15, UTC
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Alchemy Coin Technology CEO Justing Cheng pleaded guilty and was sentenced to 6 years for cryptocurrency and business loan fraud in connection with the COVID-19 pandemic.
The Justice Department said Wednesday that former CEO of fintech startup Alchemy Coin, Justin Cheng, has been sentenced to prison for fraud.
“Chen raised $ 400,000 for startup Alchemy Coin, which used blockchain technology. He misled investors about the viability of the project and the legality of the initial token offering in connection with it, ”the court’s indictment says.
These investments were obtained through substantially false and misleading statements and omissions regarding Alchemy Coin’s access to capital, the use of investor income, the product readiness of its alleged blockchain-based peer-to-peer (P2P) lending platform, and the registration of its tokens as part of its initial token offering.
Chen has been involved in a fraudulent scheme to obtain more than $ 7 million in government-guaranteed non-repayable loans to help small businesses during the COVID-19 pandemic. In order to obtain a loan to save jobs and other expenses under the Payroll Protection Program (PPP), he submitted fabricated data on the number of employees hired and the amount of salaries to government control authorities.
As a citizen of Taiwan, Justin Chen will be expelled from the United States at the end of his prison term.
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