Former California Businessman Pleads Guilty to $13M Cryptocurrency Fraud

Vincent Anthony Mazzotta Jr., a former Hollywood Hills resident now living in Arizona, pleaded guilty to money laundering and conspiracy to obstruct justice for his role in a cryptocurrency investment fraud scheme that defrauded investors of over $13 million. Mazzotta and co-defendant David Saffron falsely promised high-yield returns through AI-powered automated trading robots with companies such as Mind Capital and Cloud9Capital. To further deceive victims, they created a fictitious government entity called the Federal Crypto Reserve, soliciting additional funds by claiming it would investigate the failed crypto firms they themselves operated. After Saffron's arrest, Mazzotta conspired to obstruct justice by destroying evidence and falsifying business records to impede a federal grand jury investigation. He faces a maximum sentence of 10 years in federal prison for money laundering and up to five years for obstruction, with sentencing scheduled for December 15. Authorities emphasized the risks associated with novel investment technologies like cryptocurrencies and warned investors to remain cautious of deceptive promises.