HARTFORD, Conn. (AP) — The former CEO of companies that sold the virtual currency Paycoin and hashlets has pleaded guilty in Connecticut to a $9 million fraud.
Virtual currency can be mined by computers doing complex algorithms. It’s is not legal tender but can be used within certain communities instead of cash.
Prosecutors say Garza’s sold customers the right to more virtual currency than his companies’ computing power could generate. They say he also used money from new investors to pay old investors.
He’s scheduled to be sentenced on Oct. 12.