Cryptocurrency Swindler Involved in $13,000,000 Scam Faces Potential 15-Year Imprisonment for Deceiving Investors, According to the Department of Justice
In a significant development, an Arizona resident named Vincent Anthony Mazzotta Jr. has pleaded guilty to money laundering and conspiracy to obstruct justice charges related to a $13 million crypto Ponzi scheme. The scheme, which operated from 2021 to 2025, involved fake investment firms such as Mind Capital and Cloud9Capital, which falsely claimed to use AI-powered crypto trading bots to generate high returns.
Mazzotta also created a fabricated government agency called the Federal Crypto Reserve, which scammed victims further by pretending to investigate lost funds and charging bogus fees. The plea was made on July 30, 2025.
According to the U.S. Department of Justice (DOJ), Mazzotta and his co-defendant, David Saffron, along with others, fraudulently promised investors high-yield profits from crypto investments. However, the details of the crypto assets involved in the Ponzi scheme or the fake government entity remain undisclosed.
The scheme represents growing regulatory and law enforcement scrutiny of crypto fraud, especially those leveraging AI claims as bait. Mazzotta faces up to 15 years in prison and a fine of up to $250,000, with a sentencing hearing scheduled for October 2025. Additionally, he was charged with conspiracy to obstruct justice for destroying evidence and attempting to falsify business records to hide his involvement.
This case underscores the risks associated with investments in unverified crypto projects and the need for due diligence. It also illustrates how criminals exploit the novelty and hype around AI and crypto to defraud investors.
Meanwhile, a separate incident involves a woman who allegedly used fictitious identities to steal $219,000 from a Bank of America customer's account. The identity of the woman remains undisclosed, and the case is currently under investigation.
[1] The Daily Hodl, July 30, 2025 [2] The Arizona Republic, July 30, 2025 [3] The Wall Street Journal, July 30, 2025 [4] The New York Times, July 30, 2025 [5] The Washington Post, July 30, 2025
- Despite the growing popularity of altcoins and cryptocurrency investments, this case serves as a reminder of the risks associated with unverified crypto projects, especially those that claim to use AI-powered trading bots for high returns.
- One of the prime concerns in crypto finance today is the use of blockchain technology in questionable activities, such as the recent Ponzi scheme involving Mind Capital, Cloud9Capital, and other fake investment firms.
