Vincent Mazzotta Admits Guilt in $13M Crypto Fraud

A Deceptive Scheme That Cost Investors Millions

Vincent Anthony Mazzotta Jr., a 54-year-old man from Arizona, has admitted in court that he played a significant role in a cryptocurrency investment scam that defrauded more than $13 million from unsuspecting victims. The scheme promised fast and high returns through the use of artificial intelligence and automated trading bots, creating an illusion of technological sophistication that ultimately proved to be nothing more than a lie.

The scam targeted individuals eager to invest in the rapidly growing cryptocurrency market. Instead of helping them grow their wealth, Mazzotta and his team stole it. To cover their tracks, they destroyed evidence and falsified business records, attempting to obscure the true nature of their operations.

High Promises, Big Lies

Mazzotta, who also used aliases such as Vincent Midnight, Delta Prime, and Director Vinchenzo, partnered with co-defendant David Saffron to create a sophisticated-sounding investment scheme. They claimed to have advanced AI-powered trading robots capable of generating substantial profits in a short time.

They established investment companies like Mind Capital and Cloud9Capital, assuring investors that their money was safe and growing. In reality, these companies were entirely fake, and the only growth was the amount of money being siphoned away.

Investors sent their hard-earned cryptocurrency, believing they were part of a legitimate opportunity. However, after millions had been collected, the companies disappeared—along with the funds.

A Fake Government Agency Added to the Fraud

After their initial platforms vanished, Mazzotta and Saffron created another layer of deception. They introduced a phony government agency called the Federal Crypto Reserve (FCR), claiming it was backed by the U.S. government and could help victims recover their lost money.

This group, however, was not real. Victims were instead asked to pay additional fees to "hire" the FCR to investigate the very companies that had scammed them. Many desperate individuals paid thousands more, believing they were taking steps toward justice.

"The defendants pretended to be part of the U.S. government to make their scams look real," said Tyler Hatcher, Special Agent in Charge at the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office. "This guilty plea shows our strong commitment and unique ability to uncover even the most complex financial crimes, no matter how carefully they are hidden."

Cover-Up Efforts and Legal Consequences

When David Saffron was arrested, Mazzotta took steps to conceal their criminal activities. He and others entered Saffron’s apartment and destroyed key evidence, including an iPad and the contents of a personal safe.

Mazzotta also attempted to hide his involvement by altering business records for Runway Beauty Inc., making it appear as though he had no connection to the fraud. These efforts were designed to mislead a federal grand jury investigating the case.

Eventually, federal investigators pieced together the full scope of the crime. The case was handled by the IRS-CI, the Justice Department’s Criminal Division, and the U.S. Attorney’s Office for the Central District of California.

"Vincent Mazzotta tricked investors through a complex cryptocurrency scam and made things even worse by creating a fake government agency to continue taking advantage of the very people who trusted him with their money," said Acting Assistant Attorney General Matthew R. Galeotti.

"Investments like Bitcoin and other cryptocurrencies might seem exciting, but their newness also makes it easier for criminals to take advantage of people," said U.S. Attorney Bill Essayli.

Legal Proceedings and Potential Sentencing

Mazzotta has now pleaded guilty to one count of money laundering and one count of conspiracy to obstruct justice. He could face up to 10 years in prison for money laundering and up to five years for attempting to cover up the crime.

The case is being prosecuted by Trial Attorneys Theodore Kneller and Siji Moore from the Justice Department’s Fraud Section, along with Assistant U.S. Attorney James Hughes from the Central District of California. A federal judge will determine Mazzotta’s final sentence.