Cryptocurrency scam in Venezuela results in an 18-year prison sentence

Source: Criptonoticias Original Title: Cryptocurrency Scam in Venezuela Ends with 18 Years in Prison Original Link: https://www.criptonoticias.com/sucesos/estafa-criptomonedas-venezuela-prision-18-anos-jose-youssef-boutros/ José Youssef Boutros, owner of Café Kaldi in Venezuela of Arab origin, was sentenced to 18 years in prison for scam, money laundering, and criminal association, using cryptocurrencies, reported the country’s Attorney General.

Case Details

The individual, through deception and with the active participation of a real estate broker, presented false investment proposals to multiple victims. He failed to fulfill the agreements, causing financial damage exceeding (USD)1.5 million.

The sentence comes a year after, in December 2024, Boutros was arrested following investigations that uncovered a complex fraud scheme.

False Promises and Intimidation

According to a report from the Public Ministry, Café Kaldi operated as a front to attract investors: exchange of currency was offered at the official rate of the Central Bank of Venezuela (BCV) or at the value of the stablecoin Tether (USDT) on the black market, promising lucrative returns.

The report states that this was attractive to citizens, but later they were warned from the café that they needed to block their funds before being able to withdraw them, with the money being retained. It also claims that the perpetrators intimidated victims, assuring them that Boutros maintained close ties with a governor and a high-ranking officer of the National Armed Forces.

This case adds to a series of investigations into alleged cryptocurrency scams that have affected citizens in the region, demonstrating the importance of exercising caution with investment schemes promising quick gains in crypto assets.