Core Insights - A senior promoter of the collapsed crypto platform IcomTech, Magdaleno Mendoza, has been sentenced to 71 months in federal prison for his involvement in a multimillion-dollar Ponzi scheme targeting Spanish-speaking investors in the U.S. [2][8] - IcomTech, which promised guaranteed daily returns from cryptocurrency mining and trading, operated as a classic multi-level marketing Ponzi scheme, using funds from new investors to pay earlier participants while senior promoters misappropriated significant amounts for personal use [3][5]. Legal Consequences - Mendoza was ordered to pay $789,218.94 in restitution and forfeit $1.5 million, including his home in Downey, California, purchased with proceeds from the scheme [4]. - The sentencing also addressed Mendoza's illegal reentry into the U.S. after being deported multiple times, during which he continued to promote crypto Ponzi schemes [6]. Company Operations - IcomTech's operations included flashy promotional events across the country, where promoters showcased profits that investors could not actually withdraw [5]. - The introduction of a proprietary token called "Icoms" was intended to provide a solution for cash-out delays but ultimately proved worthless, exacerbating investor losses [5]. Broader Context - Several other individuals associated with IcomTech, including founder David Carmona and other senior promoters, have also been convicted and sentenced for their roles in the scheme [7].