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New York Man Arrested for Alleged $1.8M Crypto Mining Scam

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New York Man Arrested for Alleged $1.8M Crypto Mining Scam

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The Federal Bureau of Investigation arrested a 37-year-old man on Wednesday it says defrauded more than a dozen victims out of a total of $1.8 million in a long-running crypto mining scam.

Between March 2019 and September 2021, officials say Chester “Chet” Stojanovich posed as a dealer of crypto mining equipment, convincing his would-be customers to fork over large payments for mining machines and miner-hosting services, which Stojanovich promised to arrange at a facility in Goose Bay in Canada’s Newfoundland and Labrador province.

According to a complaint, Stojanovich never followed through on his promises and kept the majority of the money for himself.

Stojanovich is not the first person to be accused of running an elaborate scam involving crypto mining equipment. In 2020, a 60-year-old California man was arrested and charged with running a series of schemes, including a fake crypto mining operation that bilked five investors out of $550,000, half of which he spent on himself at casinos, restaurants, and hotels.

Stojanovich’s alleged scam is small potatoes compared with other crypto mining grifts. The notorious BitClub Ponzi scheme defrauded investors of $722 million over five years, purporting to sell shares of nonexistent crypto mining pools to gullible investors – only to pay them back with money from newer investors.

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