IcomTech Crypto Ponzi Promoter Sentenced to Nearly Six Years in Prison
Magdaleno Mendoza was sentenced to 71 months in federal prison for orchestrating a multimillion-dollar crypto Ponzi scheme called IcomTech, which targeted working-class Spanish-speaking investors. IcomTech, launched in mid-2018, falsely promised guaranteed daily returns from crypto trading and mining but actually operated as an MLM-style Ponzi scheme. New investor funds paid earlier participants, while Mendoza and others siphoned off hundreds of thousands for personal use. He must pay $789,218.94 in restitution, forfeit $1.5 million, and surrender his California residence purchased with proceeds from the scheme. Mendoza was a senior promoter for IcomTech, actively recruiting investors through events at his own restaurant and high-profile expos. Withdrawal requests met continual delays, and a worthless proprietary token was introduced, worsening investor losses. Mendoza, who promoted other crypto Ponzi schemes and reentered the U.S. illegally multiple times, was also sentenced for illegal reentry. Several IcomTech co-conspirators have also been convicted. The case highlights repeated exploitation of immigrant communities through affinity fraud and persistent promotion tactics in crypto fraud schemes.
