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Table of Contents

Cryptocurrency Scam Duo Indicted, 65 Counts of Wire Fraud

ERIE, Pa. – A shocking case of cryptocurrency investment scheme has come to light as two brothers from Pennsylvania stand accused of defrauding investors out of hundreds of thousands of dollars. Shane Hvizdzak, 33, of Bradford, and Sean Hvizdzak, 35, of Saint Marys, have been indicted by a federal grand jury in Erie on charges of conspiracy to commit wire fraud, wire fraud, and money laundering.

The indictment, which includes 65 counts, alleges that the brothers conspired to deceive investors in a limited partnership claiming to invest in cryptocurrency. Instead of using the funds for their intended purpose, the defendants allegedly diverted the money into their personal accounts and used it to fund unrelated ventures.

According to the indictment, the Hvizdzak brothers provided false information about the performance of their cryptocurrency investment to lure in new investors and reassure existing ones. They also used subsequent investors’ funds to pay off initial investors, presenting the payments as returns on their investment.

The law provides for a maximum total sentence of 810 years in prison, a fine of $12,500,000, or both for Shane Hvizdzak, while Sean Hvizdzak faces a maximum total sentence of 550 years in prison, a fine of $7,000,000, or both.

Assistant United States Attorney Christian A. Trabold is handling the prosecution on behalf of the government. The investigation that led to the indictment was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation.

An indictment is merely an accusation, and the defendants are presumed innocent until proven guilty in a court of law.

The case serves as a stark reminder of the importance of doing thorough research and due diligence when considering investments in the cryptocurrency market or any other financial opportunity.