Gustavo Rodriguez, one of the founders of the cryptocurrency mining and trading company IcomTech, has been convicted of online fraud and will have a few more days to prepare his testimony and confrontation before receiving his sentence at the New York court.
At the hearing on October 22 at the Southern District Court of New York, Rodriguez's lawyer requested that Judge Jennifer Rochon grant an additional hearing, arguing that the former founder of IcomTech wants to testify at the trial in March 2024. Judge Rochon said the court will hear testimony from Rodriguez and a witness on October 25.
Rodriguez is one of two IcomTech founders — along with colleague David Brend — accused in the indictment against project founder David Carmona. Authorities allege that IcomTech was a Bit-based Ponzi scheme that defrauded over $8 million from users between 2018 and 2019.
Carmona pleaded guilty to conspiracy to commit online fraud in December 2023 and was sentenced to ten years in prison in October 2024.
Brend and Rodriguez went to trial, and a jury found them guilty of several counts of conspiracy to commit online fraud in March 2024. In January, Judge Rochon sentenced the former CEO of IcomTech, Marco Ochoa, to five years after he pleaded guilty to similar charges.
"IcomTech was a large-scale Bit fraud scheme founded by David Carmona, who defrauded many investors," said U.S. Attorney Damian Williams at the founder's plea in December 2023. "Carmona and his accomplices created IcomTech on lies and seized money from victims at every opportunity."
Related to other Bit fraud cases?
As of publication, Brend is expected to receive his sentence on November 22. It is unclear what evidence Rodriguez may present in court on October 25, but his lawyers have mentioned similarities to the TRON Bit Ponzi scheme, in which several former executives have been jailed.
According to sentencing guidelines, Rodriguez and Brend face maximum sentences of 20 years and 17.5 years, respectively. Prosecutors are asking the judge to impose a 160-month sentence on Rodriguez, while his lawyer is requesting time served.
"David Brend and Gustavo Rodriguez chose to go to trial rather than take responsibility for callously destroying others' lives to enrich themselves," the U.S. government said in a sentencing proposal on October 17.
The sentencing of Brend and Rodriguez will mark the starting point for wrapping up the 2022 criminal cases against multiple former IcomTech executives. The indictment was unsealed the same week as the collapse of the Ren exchange.
The FTX court cases are also nearing completion as the final two executives named in the same indictment as former CEO Sam Bankman-Fried and former Alameda Research CEO Caroline Ellison prepare for sentencing hearings in the coming weeks.
Nishad Singh is expected to appear in court on October 30, and Gary Wang has a sentencing hearing on November 20.
