• Austin Nedved admits in US courts that he participated in a Bitcoin scam
  • He could spend up to 20 years in prison 

Austin Nedved has admitted in a federal court that he participated in a Bitcoin scam where he transacted Bitcoin for cash on behalf of fraudsters. In a press statement released by the US authorities, the Department of Justice, Austin advertised his services on a local website, LocalBitcoins.com and Paxful.

His business, in particular, assisted romance and lottery scammers to help defraud unsuspecting victims of their money. He did this between the space of 2017 and 2019.

The report cited one case in which a scammer was using Jonathan G as an alias to defraud a septuagenarian. According to the fraudster bio, he claims to be a businessman from Massachusetts. 

The fraudster then lured the victim into believing that he was going to marry her and months into their online relationship, he lied about his business suffering a mishap and he needed financial assistance to rebuild it.

The victim was then advised to sell her Bitcoin that was worth $100,000. The proceeds were later sent to the fraudster who was posing as Jonathan G.

The DOJ stated that when Austin received the funds from the victim, he knew that the funds were being sent by an unsuspecting fraud victim and that he was a willful participant in the fraud case.

Austin could face up to 20 years for Bitcoin Scam

Austin and his accomplices had converted over $600,000 into the leading the crypto asset knowing fully well that the funds were from victims of romance scams or lottery scams. 

The victims were often lured to believe that they were also participating in a lottery or they were eligible for a government grant. The victims were then referred to Austin where they had to pay an “administrative fee” which was then remitted to the fraudsters.

According to the laws, Austin could spend up to 20 years in prison for aiding and abetting wire fraud and he also could be forced to cough out $500,000 as fine.