Crypto Mining Fraudster Sentenced to 3 Years in Prison

• A U.S. district judge has sentenced a man to three years in prison for defrauding purchasers of cryptocurrency miners and miner-hosting services.
• The defendant misappropriated his victims‘ money and failed to provide them with the miners and miner-hosting services they had purchased from him.
• In addition to his prison sentence, Stojanovich was also sentenced today to three years of supervised release, forfeiture of $2,158,927, and restitution to his victims in the amount of $2,108,927.

Sentencing for Crypto Mining Fraud Scheme

A U.S. district judge has handed down a sentence for a man who defrauded purchasers of cryptocurrency miners and miner-hosting services: he was sentenced to three years in prison for wire fraud. The defendant misappropriated his victims’ money and failed to deliver on the products they had paid for.

Deceptive Practices

The Department of Justice explained that from at least 2019 until his arrest in April 2022, the defendant employed deceptive practices “to create the illusion that such miners had been acquired and were being used to provide hash power to those customers” when in fact he had not provided them with any mining equipment or hosting services at all. Furthermore, he allegedly misappropriated their funds for unrelated personal expenses like chartered air flights, hotel rooms, limousines, private parties etc.

Sentence Handed Down by Judge Cote

The defendant pled guilty in November last year so on Thursday before U.S District Judge Denise Cote he was handed down a sentence on top of the prison sentence: three years supervised release; forfeiture of $2,158;927; and restitution of $2108;927 to be paid back out his victims who have suffered financial losses as a result of this scheme.

Cryptocurrency Mining is Risky Business

This case gives an example as how risky it can be dealing with cryptocurrency mining investments: while there is potential for high returns it is important that people are aware that there are risks involved too – both fraudulent actors seeking to take advantage off unsuspecting investors as well as market volatility which can cause losses when prices go down suddenly without warning or reason.


In conclusion this case demonstrates how seriously authorities now take crypto related crimes like frauds involving cryptocurrency miners or hosting services: even if you manage not get caught red handed you may still face severe penalties if found guilty which can include jail time!