A senior promoter involved in the collapsed crypto venture IcomTech has been sentenced to nearly six years in U.S. federal prison, marking another major development in the ongoing prosecution of one of the most prominent cryptocurrency fraud cases in recent years.
Magdaleno Mendoza, 56, received a 71-month prison sentence after pleading guilty to conspiracy to commit wire fraud and illegal reentry into the United States, according to a statement released Thursday by the U.S. Department of Justice. Mendoza is one of several high-ranking figures held accountable for their roles in the scheme, which authorities say defrauded investors across the country and beyond.
Prosecutors described Mendoza as a key recruiter for IcomTech, particularly within Spanish-speaking and working-class communities. U.S. Attorney Jay Clayton for the Southern District of New York said Mendoza exploited trust and limited investment experience by promoting IcomTech as a safe and profitable opportunity tied to cryptocurrency.
Court records show that Mendoza worked closely with IcomTech founder David Carmona and traveled extensively throughout the U.S. to host promotional events aimed at attracting new investors. Investigators say these efforts helped funnel millions of dollars into the operation.
IcomTech launched in 2018, presenting itself as a cryptocurrency mining and trading company that promised guaranteed returns. In reality, officials say the company never conducted legitimate crypto trading or mining. Instead, funds from new investors were used to pay earlier participants and support the extravagant lifestyles of promoters, fitting the classic structure of a Ponzi scheme.
The sentencing follows other significant penalties tied to the case. Carmona, identified by prosecutors as the architect of the fraud, was sentenced to nearly 10 years in prison in October 2024. Former IcomTech CEO Marco Ruiz Ochoa received a five-year sentence earlier in January 2024.
Regulators estimate the scheme defrauded at least 190 individuals in the United States and other countries of more than $1 million. As part of his sentence, Mendoza was ordered to pay approximately $790,000 in restitution, forfeit $1.5 million, and surrender ownership of a home in Downey, California, which authorities say was purchased using proceeds from the fraud.
