Crypto Project ICST CEO Arrested By FBI over $3.5 Million Bitcoin Heist
The founder and CEO of crypto project ICST, Jerry Ji Guo was reportedly arrested by FBI on fraud charges for allegedly stealing cryptocurrency worth millions of dollar.
Court Indictment on Nov. 15, 2018
FBI agents in Puerto Rico on Nov 9 arrested the self-claimed “serial blockchain entrepreneur” for stealing over $3.5 million worth of cryptocurrency from startups that hired him as a consultant. Apart from that, Guo also transferred 1,036.99 ETH, worth $300,000, from his project ICST’s escrowed wallet in BitGo into his personal wallet, according to prosecutors.
The victims included blockchain projects Penta and Rate3, and the alleged haul in Bitcoin and Ethereum amounted to at least $3.5 million. “GUO provided little to none of the services promised to clients within the contract period,” a supervisory special agent with FBI wrote.
During the investigation, the bureau found that the Chinese-American Yale graduate has lied on its resume which was packed with employers who had never heard of him. Before he stepped into the crypto sector, he was a journalist but rebuked as “an infamous media liar” for he got double-paid for farming out his news content and was even caught using his credentials to scam free merchandise and trips.
His crypto project, ICST, or Individual Content and Skill Token, founded in 2017, is described as a content sharing platform that would help undiscovered musicians achieve fame and fortune with blockchain technology.
The project has some popularity in China as it was claimed to be backed by a chairman of an A-share listed company and Chinese bitcoin tycoon Li Xiaolai. In its ICO (initial coin offering), it pulled in 5,000 ETH in 17 days this June, worth $2.48 million at that time.
As of press time, it is valued at 0.000006 ETH according to CryptoCompare, down 42.86% in the past 24 hours, while its ICO price was 0.0001 ETH at the very start.
According to the court document released on Nov 15, Guo would face eight-count indictment, which carries a sentence of up to 20 years in prison and at least five years, three months under federal sentencing guidelines.