Cryptocurrency Repayment Method for Alleged Ponzi Scheme Operators Declared Illegal in Guyana
By [Author’s Name]
Kaieteur News
The Attorney General, Anil Nandlall, has dealt a significant blow to the proposed cryptocurrency repayment method announced by the principals of Accelerated Capital Firm (ACF) Inc., declaring it illegal and not a legal tender in Guyana.
Background Yuri Garcia-Dominguez and his wife Ateeka Ishmael, alleged Ponzi scheme operators, had sought to repay their over 17,000 clients using cryptocurrency. However, Nandlall has made it clear that this method is illegal and cannot be used to recover funds from investors.
Proposed Repayment Method Marketers of ACF sent a message to investors stating that Garcia-Dominguez plans to use an app called CoinZoom to transfer Bitcoin to their e-wallet and then sell it for US dollars. The investors would then wire transfer the money to their bank account without any issue.
Attorney General’s Response Nandlall has described this new repayment method as another excuse not to repay the investors, stating: “This guy [Garcia-Dominguez] is a fraud, it’s just excuses after excuses… first he requested to get out of prison, then it was access to computers followed by having access to a bank account. We granted all his requests and still the investors are yet to be repaid.”
Investor Concerns The Attorney General also highlighted that despite being granted bail and announcing a date for repayment, thousands of people are still waiting to receive their money. He questioned how the money was transferred overseas, stating: “He claimed that the money was transferred to a bank account overseas, yet still there is no evidence of the money being transferred. How the money reached, nobody knows, and of course, it can’t fly and reach there.”
Bank of Guyana Official’s Statement A Bank of Guyana official confirmed that they have never heard of cryptocurrency being used in Guyana.
Investment Concerns Investors are worried about the further disadvantages of getting the bitcoins changed over to cash and whether or not this is just another delaying tactic. Garcia-Dominguez and his wife are charged for allegedly running a Ponzi scheme in which over US$20M was swindled out of thousands of Guyanese.
Charges and Investigation The couple has also been slapped with two charges under the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CF) Act. Prior to these charges, they had appeared in three different magistrates’ courts, slapped with over 80 fraud charges. Almost one month after the repayment process was halted due to the seizure of monies, electronics, and financial documents by SOCU, an arm of the Guyana Police Force, only 27 investors have been repaid. The new government had launched an investigation after complaints were made by investors of not receiving their money.
Summary
The Attorney General has declared the proposed cryptocurrency repayment method for alleged Ponzi scheme operators illegal in Guyana. Investors are concerned about the further disadvantages of getting bitcoins changed over to cash and whether this is just another delaying tactic. The case highlights the importance of regulatory oversight in the financial sector to prevent fraudulent activities.