Marco Ruiz Ochoa pleaded guilty to one count of conspiracy to commit wire fraud in the Southern District Court of New York on Sept. 27 in relation to Ponzi scheme perpetrated by the IcomTech company. Ochoa was CEO of IcomTech from its founding in 2018 to 2019.
According to a statement from the United States Justice Department, IcomTech promised investors daily returns on investment products offered by the company, which purported to be a crypto mining and trading company. Promoters “hosted lavish expos” and other community events around the world to attract customers. The company also issued its own token, called an Icom.
The company allegedly did not mine crypto, however, and investors were unable to withdraw profits they saw accruing in their accounts. The company collapsed in late 2019. Charges were brought against Ochoa and other IcomTech executives in November. Ochoa faces a maximum sentence of 20 years in prison. U.S. Attorney Damian Williams said:
“Today’s guilty plea sends a clear message that we are coming after all of those who seek to exploit cryptocurrency to commit fraud.”
Ochoa’s plea came a day after Pablo Rodriguez, co-founder of the AirBit Club Ponzi, was sentenced to 12 years in prison by a different judge of the Southern District Court of New York.
Also on Sept. 27, the Commodity Futures Trading Commission (CFTC) announced charges against Mosaic Exchange Limited and its CEO Sean Michael. Mosaic Exchange allegedly lured investors to allow it to enter into “futures, swaps, and leveraged spot transactions in cryptocurrency” on their behalf. CFTC commissioner Kristin Johnson said in a statement on the charges:
“Mosaic was able to trade digital asset derivatives on BitMEX and Binance, two platforms that the CFTC has previously charged with, among other things, failing to register as an FCM [futures commission merchant], SEF [swap execution facility], or DCM [designated contract market], and failing to implement anti-money laundering and know-your-customer procedures.”
“In accordance with our existing authority, the CFTC should begin introducing regulation to address gaps that may exist in these novel market structures,” she continued.
The Bank of France’s governor called for crypto oversight to be given to the European Securities and Markets Authority, and for tightening MiCA’s rules on stablecoin issuance.
There’s no question that Kemi Badenoch’s on the ropes after a low-energy first year as leader that has seen the Conservative Party slide backwards by pretty much every metric.
But on Wednesday, the embattled leader came out swinging with a show-stopping pledge to scrap stamp duty, which left the hall delirious. “I thought you’d like that one,” she said with a laugh as party members cheered her on.
A genuine surprise announcement – many in the shadow cabinet weren’t even told – it gave the Conservatives and their leader a much-needed lift after what many have dubbed the lost year.
Image: Ms Badenoch with her husband, Hamish. Pic: PA
Ms Badenoch tried to answer that criticism this week with a policy blitz, headlined by her promise on stamp duty.
This is a leader giving her party some red meat to try to help her party at least get a hearing from the public, with pledges on welfare, immigration, tax cuts and policing.
In all of it, a tacit admission from Ms Badenoch and her team that as politics speeds up, they have not kept pace, letting Reform UK and Nigel Farage run ahead of them and grab the microphone by getting ahead of the Conservatives on scrapping net zero targets or leaving the ECHR in order to deport illegal migrants more easily.
Ms Badenoch is now trying to answer those criticisms and act.
At the heart of her offer is £47bn of spending cuts in order to pay down the nation’s debt pile and fund tax cuts such as stamp duty.
All of it is designed to try to restore the party’s reputation for economic competence, against a Labour Party of tax rises and a growing debt burden and a Reform party peddling “fantasy economics”.
She needs to do something, and fast. A YouGov poll released on the eve of her speech put the Conservatives joint third in the polls with the Lib Dems on 17%.
That’s 10 percentage points lower than when Ms Badenoch took power just under a year ago. The crisis, mutter her colleagues, is existential. One shadow cabinet minister lamented to me this week that they thought it was “50-50” as to whether the party can survive.
Image: (L-R) Shadow business secretary Andrew Griffith, shadow environment secretary Victoria Atkins and shadow housing secretary Sir James Cleverly. Pic: PA
Ms Badenoch had to do two things in her speech on Wednesday: the first was to try to reassert her authority over her party. The second was to get a bit of attention from the public with a set of policies that might encourage disaffected Tories to look at her party again.
On the first point, even her critics would have to agree that she had a successful conference and has given herself a bit of space from the constant chatter about her leadership with a headline-grabbing policy that could give her party some much-needed momentum.
On the second, the promise of spending control coupled with a retail offer of tax cuts does carve out a space against the Labour government and Reform.
But the memory of Liz Truss’s disastrous mini-Budget, the chaos of Boris Johnson’s premiership, and the failure of Sunak to cut NHS waiting lists or tackle immigration still weigh on the Conservative brand.
Ms Badenoch might have revived the room with her speech, but whether that translates into a wider revival around the country is very hard to read.
Ms Badenoch leaves Manchester knowing she pulled off her first conference speech as party leader: what she will be less sure about is whether it will be her last.
I thought she tacitly admitted that to me when she pointedly avoided answering the question of whether she would resign if the party goes backwards further in the English council, Scottish parliament and Welsh Senedd elections next year.
“Let’s see what the election result is about,” was her reply.
That is what many in her party are saying too, because if Ms Badenoch cannot show progress after 18 months in office, she might see her party turn to someone else.