According to the District Attorney’s Office for the District of Guam and the Northern Mariana Islands, Weymouth, who is 32 years old, provided cash and cryptocurrency transfer services for a fee between January 2020 and April 2021. Furthermore, Weymouth actively encouraged individuals to invest in cryptocurrencies, promising them significant returns on their investments.
Weymouth funneled the attracted bitcoins to a third party named William Ichioka, who managed an investment scheme called Ichioka Ventures. Ichioka was subsequently prosecuted in the Northern District of California. During the course of this fraudulent scheme, Weymouth transferred assets amounting to approximately $5.5 million. He then went on to reinvest his personal profits into various cryptocurrencies, held the rest in bank accounts, and even splurged on purchasing vehicles.
In addition to these charges, prosecutors also discovered that Weymouth failed to register with the Financial Crimes Enforcement Network (FinCEN), thereby violating federal money transfer regulations. As part of the plea agreement, Weymouth’s assets, which include over 200 BTC worth $8 million, 6 cars, and $127,000 in a bank account, were confiscated. The court sentenced Weymouth to 30 months in prison followed by three years of supervised release.
This case comes on the heels of the arrest of one of the organizers of the G|CLUBS cryptocurrency fraud scheme last year, a scheme that defrauded investors of approximately $1 billion.