Jonathan Yelemian Sifuentes Saucedo, a Brazilian national, and three Arizona residents faced securities fraud penalties from the Arizona Corporation Commission (ACC) for operating My Trader Coin and Now Mining. These two distinct Ponzi schemes defrauded nearly 200 investors of $1.6 million between 2017 and 2018.
My Trader Coin and Now Mining promised investors daily returns on cryptocurrency investments that did not exist. Sifuentes Saucedo, primarily based in Texas, founded or led My Trader Coin. Mario Sosa, Moises Herrera, and Carlos Parra, all Arizona residents, facilitated sales for both schemes, largely targeting the Hispanic community.
The ACC's investigation, initiated in 2020, detailed how the operators systematically exploited vulnerable individuals. They cultivated trust through local Hispanic Christian churches, recruiting congregants directly. KASA Radio, now known as La Indiscreta FM, served as another key platform for advertising. Herrera, the radio station's Vice President, and Parra, its Director, used their positions to lend credibility and secure airtime for the fraudulent pitches.
Between March 2017 and 2018, the four men sold at least 194 investments to approximately 185 individuals. My Trader Coin accounted for $1.5 million of the total funds collected. Now Mining added an additional $106,500 to the schemes' illicit gains.
Each operator managed his own pool of victims. Sifuentes Saucedo sold MTCoin stakes totaling $126,000 to at least 12 investors. Sosa secured approximately $297,800 from 26 investors. Herrera brought in at least 11 investors, collecting $221,500. Parra signed up at least 17 people, obtaining $229,000.
The sales pitch was straightforward and misleading. Investors received assurances that they could withdraw their promised earnings from MTCoin accounts via CoinBase shortly after their initial investment. This never occurred. Early participants, some investing as early as March 2017, waited indefinitely for access to their funds and promised returns.
The operators knowingly withheld critical information. As withdrawal problems mounted for initial investors, the men continued to recruit new victims without disclosing the system's failure to deliver on its promises. They simply expanded their network of potential losses.
Only four investors managed to retrieve any money, a combined total of $28,000 in returns. The vast majority of participants lost their entire investments.
Now Mining began operations in the fall of 2017, mirroring My Trader Coin's fraudulent pattern. Sosa, Herrera, and Parra handled the sales for this second scheme, again promoting a cryptocurrency investment that generated no actual returns for its participants.
My Trader Coin collapsed by late 2017. Now Mining followed suit in mid-2018. By the time both schemes unraveled, the financial damage to nearly 200 Arizona families, predominantly from the Hispanic community, was complete.
The Arizona Corporation Commission issued a cease and desist order and seeks restitution and administrative penalties against Sifuentes Saucedo, Sosa, Herrera, and Parra. For the victims, the prospect of recovering their lost funds remains uncertain.