A senior promoter behind the collapsed crypto platform IcomTech has been sentenced to nearly six years in federal prison for his role in a multimillion-dollar Ponzi scheme that targeted working-class, Spanish-speaking investors across the United States.
Key Takeaways:
- An IcomTech promoter was sentenced to nearly six years for running a crypto Ponzi scheme.
- The platform used fake “guaranteed returns” to recycle investor funds.
- Mendoza must repay victims and forfeit assets.
Magdaleno Mendoza was sentenced on Thursday to 71 months in prison, according to the US Attorney’s Office for the Southern District of New York.
Prosecutors said Mendoza played a central role in promoting IcomTech, a purported crypto mining and trading company that launched in mid-2018 and unraveled by the end of 2019.
IcomTech’s “Guaranteed Returns” Masked Classic MLM-Style Crypto Ponzi
IcomTech promised investors guaranteed daily returns from cryptocurrency mining and trading.
In reality, the operation functioned as a classic multi-level marketing Ponzi scheme, using funds from new investors to pay earlier participants while senior promoters diverted hundreds of thousands of dollars for personal use.
In addition to prison time, Mendoza was ordered to pay $789,218.94 in restitution and forfeit $1.5 million, along with his home in Downey, California, which prosecutors said was purchased using proceeds from the scheme.
Court filings show Mendoza was one of IcomTech’s most senior promoters and maintained close contact with founder David Carmona.
He hosted recruitment events at his own restaurant in the Los Angeles area, collecting large amounts of cash from attendees.
Crypto promoter sentenced for Ponzi scheme “IcomTech.” “Mendoza targeted Spanish-speaking investors with false promises about ‘crypto’ profits and left victims, including those here in New York, holding only losses,” said U.S. Attorney Jay Clayton.https://t.co/ZmXKRrFPBZ
— US Attorney SDNY (@SDNYnews) December 18, 2025
Promoters traveled nationwide hosting flashy expos, arriving in luxury vehicles and designer clothing, while investors were shown dashboards displaying profits they could not withdraw.
By August 2018, investors began encountering delays and excuses when attempting to cash out.
IcomTech responded by introducing a proprietary token called “Icoms,” which promoters claimed would eventually be used for payments. The token ultimately proved worthless, further compounding investor losses.
The sentencing also covered Mendoza’s illegal reentry into the United States after deportation. Prosecutors said he had been removed from the country four times, once under a false identity, and continued promoting crypto Ponzi schemes even after IcomTech collapsed.
IcomTech Mastermind Sentenced to 10 Years in Prison
Several other figures connected to IcomTech, including founder David Carmona and multiple senior promoters, have already been convicted and sentenced.
In October, Carmona, the mastermind behind IcomTech, was sentenced to 10 years in prison for conspiracy to commit wire fraud.
Gustavo Rodriguez, an IcomTech promoter, was sentenced to eight years on October 31, while David Brend received a 10-year sentence on December 2. In January, Ochoa was sentenced to five years in prison for his role in the scheme.
Between 2018 and 2019, IcomTech promised investors a 100% return every six weeks.
IcomTech promoters enacted the massive crypto scheme by attending lavish expos in luxury cars and wearing expensive clothing, giving the illusion that the sham digital asset company could offer investors financial freedom.
However, this facade began to crumble by August 2018 as investors struggled to withdraw their funds from the platform.
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