[NEWS] Head of cryptocurrency Ponzi scheme "FourCount" sentenced to 20 years in prison

Juan Tacuri, one of the leading promoters of the cryptocurrency Ponzi scheme Forcount (later Welsys), was sentenced to 20 years in prison on the 16th.

Damian Williams, US Attorney for the Southern District of New York, said in a statement, "Tacuri claimed to be involved in cutting-edge cryptocurrency investments, but in fact ran one of the most scams in the history of the Ponzi scheme. Tacuri was one of the most prominent promoters of Forcount, and he scammed many victims out of millions of dollars," adding, "Today's sentence should serve as a harsh reminder that fraud does not pay in the long term."

Forcount was a company that was said to mine cryptocurrency and promised to make profits to victim investors who purchased cryptocurrency-related investment products. Tacuri and other founders and promoters of the scheme claimed that the profits from the company's cryptocurrency trading and mining would guarantee the victim's investment and double their investment within six months.

In reality, FourCount did not mine or trade cryptocurrencies, and Thakuri and his co-conspirators used victims' funds to pay other victims as profits, further promoting and expanding the scheme and increasing their own assets.

Thakuri was suspected of being active across the United States, hosting parties and information sessions with other participants to lure victims and encourage them to invest. At large events, he explained FourCount's investment products and compensation plan, and claimed that investing in the project would give them "financial freedom."

Victims invested in the FourCount scheme by purchasing investment products from promoters using cash, checks, and cryptocurrencies. After investing, victims could access an online portal site and view their earnings. However, although they could see profits accumulating on the site, most victims were unable to withdraw their profits and ultimately lost all of their assets.

In contrast, promoters such as Thakuri withdrew hundreds of thousands of dollars and used them for advertising expenses and personal expenses such as luxury goods and real estate. In April 2018, a victim who tried to withdraw funds from an account on the online portal site filed a complaint but was unable to withdraw the funds.

New cryptocurrency issued

As complaints mounted, FourCount began selling its own cryptocurrency. The tokens, which Thakuri and his team called "MindexCoin," were claimed to eventually become quite valuable when businesses accepted them as payment for goods and services. This resulted in further financial losses for the victims without actually creating any value.

In addition to the prison sentence, Thakuri was placed on probation for one year and ordered to pay approximately $3.6 million in restitution. His Florida home and all of his property were also confiscated.

Reference: U.S. Attorney's Office for the Southern District of New York
Image: Shutterstock

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