David Kagel, Former 85-Year-Old Lawyer Has Cheated Rp154 Billion In Crypto Ponzi Case

JAKARTA - David Kagel, a 85-year-old former lawyer, pleaded guilty to a conspiracy to run a crypto Ponzi scheme that deceived the victim to more than 9.5 million US Dollars (approximately IDR 154.1 billion). Figures that have been respected as legal authorities in Beverly Hills, California, are now facing a maximum sentence of five years in prison for their involvement in a fraudulent scheme that undermines the image of the crypto industry.

Kagel, along with his fellow conspirators, took advantage of investor expectations and trust by offering a fake crypto investment scheme that promises high profits. Court documents reveal that they use false guarantees and certainty, including claims that artificial intelligence-based trading bots are used to manage investments in volatile crypto markets.

The promoters of the Ponzi scheme deceived the victim convincingly that Kagel, in his capacity as a lawyer, holds a Bitcoin worth about US$11 million (around Rp. 178.4 billion) as collateral to protect their investment from potential losses. Kagel even provided official papers from his law firm to confirm the validity of the investment program which turned out to be nothing more than a hoax.

According to CryptoPotato information, Nicole M. Argentieri, Deputy Assistant Attorney General Utama, highlighted how Kagel exploited her lawyer's status to gain investor confidence and support false claims about crypto investment. Kagel preys on individuals who believe through complex schemes to separate people from their hard-to-work money," said Tyler Hatcher, a Special Agent in Charge.

Kagel's guilty confession became a turning point in an ongoing investigation. With a sentence scheduled for September 10, he faces a maximum sentence of five years in prison. This admission also opened the veil over the use of victims' funds for personal gain by Kagel and his co-conspirators.

David Gilbert Saffron of Australia and Vincent Anthony Mazzotta Jr. from Los Angeles, who awaits their trial on August 13, allegedly promoted investment programs using aka such as Circle Society and Bitcoin Wealth Management. They are accused of diverting victims' funds for personal expenses, including private jet flights and staying at luxury hotels, which shows how easily the victim's money is diverted to live a luxurious lifestyle.