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Instagram Influencer “Jay Mazini” Sentenced for Crypto Ponzi Scheme
Instagram influencer Jebara Igbara, known as “Jay Mazini,” has been sentenced to seven years in prison for orchestrating a multi-million dollar crypto Ponzi scheme. Igbara, a 28-year-old from New Jersey, pleaded guilty to fraud charges, confessing to running a Ponzi scheme that involved cryptocurrency fraud and resulted in approximately $8 million in illicit gains.
Exploiting the Muslim Community
Taking advantage of the economic turmoil caused by the COVID-19 pandemic, Igbara exploited his connections within the Muslim community to solicit investments for his company, Hallal Capital LLC. He claimed that the investments would generate returns through stock trading and the resale of electronics and personal protective equipment.
Fraud Unveiled
“The prosecution of Igbara unmasked him as a fraudster who used his social media popularity to con investors out of millions of dollars,” Breon Peace, the U.S. Attorney for the Eastern District of New York, said. “Shamefully, he targeted his own religious community, taking advantage of their trust in him so he could spend and gamble their hard-earned money.”
Online Persona and Legal Troubles
Igbara bolstered his online persona by building a substantial following of approximately 1 million Instagram users. He gained popularity by filming cash giveaways, often distributing money to fast food workers and ordinary individuals at Walmart. In one video, he even shared the spotlight with rapper 50 Cent.
Legal Consequences
Arrested in 2021 on kidnapping charges, Igbara faced criticism and legal troubles. During his sentencing in a Brooklyn federal court, Igbara expressed remorse to his victims. Attorney Jeffrey Lichtman stated that Igbara apologized profusely for his actions. In addition to his seven-year fraud sentence, Igbara received a concurrent five-year prison term for the kidnapping charges. The sentence includes credit for time served since 2021. Furthermore, he was ordered to pay $10 million in restitution to his victims.
Web3 Capital Losses
As reported, the first quarter of this year has seen $336 million lost to Web3 hackers and fraud, with nearly half of the capital stolen in January alone. Nonetheless, the number represents a 23% decrease compared to the first quarter of 2023. It is also worth noting that $73,885,000 has been recovered from stolen Web3 capital in 7 specific situations.