Vincent Anthony Mazzotta Jr has pleaded guilty to money laundering and conspiracy to obstruct justice related to a crypto Ponzi scheme that defrauded investors of $13 million. The scheme involved fictitious investment firms claiming to use AI-powered trading bots. Mazzotta's guilty plea carries a potential maximum sentence of 15 years in prison, though sentencing has yet to be decided. He, along with co-conspirator David Saffron, who has pleaded not guilty, operated through companies like Mind Capital and Cloud9Capital. Mazzotta also created a fake government agency, the Federal Crypto Reserve, and charged victims for investigating the non-existent losses. The funds were reportedly used to finance a lavish lifestyle, including private jets and luxury accommodations. Additional charges were brought against co-defendant David Kagel, who was sentenced for conspiracy to commit commodity fraud. The case highlights the ongoing scrutiny federal authorities maintain over fraudulent investment schemes in the cryptocurrency sector.

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