AirBit crypto Ponzi victims can now claim slice of $400M asset haul

"The US Department of Justice has begun accepting applications from victims of the AirBit Club crypto Ponzi scheme for a slice of more than $400 million in forfeited assets tied to the fraud. The compensation fund currently lists about $150 million as available for payout."

"Launched in 2015, AirBit Club's schtick was that it ostensibly offered investors guaranteed daily passive income through cryptocurrency mining and trading. It was pitched as a trustworthy multi-level marketing initiative, although prosecutors have since said it mainly preyed on "unsophisticated investors," running conferences and expos as ways to demonstrate its legitimacy."

"Members were given access to an investor portal, which would display sums they wanted, and expected, to see - daily profits building as promised. However, these figures were entirely fabricated. Investors' money was never used for cryptocurrency mining or trading; instead, prosecutors said, it was pocketed by the fraudsters behind AirBit Club and used to fund additional recruitment events across the United States, Latin America, Asia, and Eastern Europe."

"According to a dedicated website established for the compensation scheme, victims must meet a number of criteria in order to prove their eligibility, including that they used their own money to invest, did so without willful ignorance of the scam's illegitimacy, and that they had funds still inside AirBit Club at the time of its collapse in August 2020. Those who withdrew their funds before that time, likely incurring the huge withdrawal fees to do so, will not be eligible."

The US Department of Justice began accepting applications from victims of the AirBit Club crypto Ponzi scheme for payouts from more than $400 million in forfeited assets. The compensation fund lists about $150 million as currently available. AirBit Club launched in 2015 and promised guaranteed daily passive income through cryptocurrency mining and trading, marketed as a multi-level marketing initiative. Prosecutors said the displayed investor profits were fabricated and investor money was not used for trading or mining. Instead, funds were used to support recruitment events across multiple regions. Withdrawal attempts were met with delays, very high fees, or account freezes. Eligibility requires proof that victims invested their own money without willful ignorance and still held funds inside the platform when it collapsed in August 2020.

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