Magdaleno Mendoza received a 71-month federal prison sentence for his role in the IcomTech cryptocurrency Ponzi scheme after pleading guilty to conspiracy to commit wire fraud. The SDNY says the scheme bilked investors and involved multiple co-conspirators already convicted or sentenced.

A federal court in the Southern District of New York sentenced Magdaleno Mendoza to 71 months in prison for his participation in the IcomTech cryptocurrency Ponzi scheme, the U.S. Attorney’s Office announced. Mendoza pleaded guilty to conspiracy to commit wire fraud; prosecutors described a scheme that recruited investors with false promises of returns and used new investments to pay earlier participants. The case involved multiple co-conspirators who engaged in deceptive marketing and fabricated account statements to sustain the appearance of legitimate trading. Several participants in the broader conspiracy have previously been convicted or sentenced, underscoring coordinated prosecutorial efforts. In addition to incarceration, the court imposed restitution and other monetary orders intended to compensate victims where feasible. Federal authorities framed the sentence as part of continued enforcement against crypto-based investment fraud, signaling that traditional fraud statutes are being applied to complex schemes leveraging digital assets and online platforms to solicit and launder investor funds.