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IcomTech Promoter Magdaleno Mendoza Sentenced to 71 Months in Crypto Ponzi Case

Prosecutors say the punishment reflects efforts to deter community-targeted crypto fraud.

Overview

  • Mendoza, 56, pleaded guilty in July 2025 to conspiracy to commit wire fraud and illegal reentry before U.S. District Judge Paul G. Gardephe.
  • He was ordered to pay $789,218.94 in restitution and to forfeit $1.5 million, including his interest in a Downey, California home bought with illicit proceeds.
  • IcomTech marketed crypto mining and trading products but functioned as an MLM-style Ponzi scheme that promised guaranteed daily returns and paid old investors with new deposits.
  • Promoters targeted working-class, Spanish-speaking communities with flashy in-person events, and Mendoza hosted cash-collection pitches at his Los Angeles–area restaurant.
  • As the scheme faltered, IcomTech sold a proprietary token called “Icoms” that proved worthless, and Mendoza later promoted at least three other crypto Ponzi schemes as co-conspirators were sentenced separately.