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yesterday

Mazzotta Pleads Guilty in $13 Million AI-Driven Crypto Ponzi Scheme

His admission of guilt on money laundering charges with an obstruction component opens the path to a December sentencing with potential 15-year imprisonment

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Overview

  • Vincent Mazzotta pleaded guilty to one count of money laundering and one count of conspiracy to obstruct justice in federal court
  • He and co-defendant David Saffron used AI-powered trading platforms like Mind Capital and Cloud9Capital to dupe investors out of more than $13 million
  • The pair then created a fictitious agency called the Federal Crypto Reserve to extract additional recovery fees from defrauded investors
  • After Saffron’s arrest, Mazzotta destroyed digital evidence and falsified records of his business, Runway Beauty Inc., to impede the investigation
  • He faces up to 15 years in prison at a December 15, 2025, sentencing hearing; Saffron remains indicted and IRS Criminal Investigation continues probing the case