At least four individuals told the FBI that they had invested over $100,000 in Bitcoin, expecting cash wire transfers. One victim reported being defrauded of 50 Bitcoin.
Jebara Igbara, the Instagram influencer, known as Jay Mazini, received a seven-year imprisonment for masterminding a multimillion-dollar crypto fraud. Igbara, aged 28, residing in New Jersey, confessed to several fraud allegations, acknowledging that he defrauded nearly $8 million from online followers and a network of Muslim investors.
“Igbara was a crypto con man. He not only created a fake online presence to purport that he was a wealthy crypto investor, he used his Instagram persona as proof of success when convincing his unsuspecting victims to invest in his schemes,” said IRS-CI Special Agent-in-Charge Fattorusso.
According to prosecutors, Jay Mazini made bold commitments to attract these investors. He said his company, Halal Capital LLC, could earn high returns by investing in stocks, electronics, and personal protective equipment (PPE). However, authorities claim he took advantage of people’s financial fears to scam them.
However, the company proved a classic Ponzi scheme, using funds from newcomers to compensate preceding investors. The ill-gotten gains reportedly financed Igbara’s rich life lifestyle, including luxury cars and a gambling habit.
Crypto Fraudster’s Fake Cash Giveaways
While Igbara cultivated relationships with high-profile investors offline, he simultaneously cultivated a larger-than-life online persona. Amassing nearly 1 million followers on Instagram, prosecutors detailed how Igbara projected an image of immense wealth.
“Shamefully, he targeted his own religious community, taking advantage of their trust in him so he could spend and gamble their hard-earned money,” said Breon Peace, US Attorney for the Eastern District of New York, in a statement.
This carefully crafted image came complete with staged “cash giveaway” videos. Igbara would often film himself handing out large sums of money to unsuspecting fast-food workers or random shoppers at Walmart. In one such video, he even appeared alongside rapper 50 Cent.
“Igbara touted his purported wealth by posting videos on his Instagram account showing him handing out large sums of cash to shoppers waiting on the checkout line in grocery stores…” the filing said.
Four individuals told the FBI that they sent over $100,000 in Bitcoin, anticipating cash wire transfers, as per court records. One victim reported losing 50 Bitcoin, amounting to a considerable loss, after Igbara initially faked a $2.56 million wire transfer and subsequently offered explanations for the transfers’ failure to arrive.
Online Persona Leads to Arrest
By 2020, cracks began to show in Igbara’s carefully constructed online persona. Online investigators, often referred to as “sleuths”, publicly accused him of fraudulent activity. These accusations reached a fever pitch when Igbara was arrested in 2021 on unrelated kidnapping charges. Later, he admitted to kidnapping a potential witness in his crypto fraud case.
While not all victims reported the crimes, court documents reveal a significant number did come forward to the FBI, leading to Igbara’s downfall. The seven-year sentence serves as a stark reminder of the dangers of online personas and the importance of responsible investment practices.
next