The collapse of IcomTech is still rippling through the U.S. court system, with another senior figure now heading to federal prison as authorities continue dismantling one of the most aggressive crypto Ponzi operations of the last cycle.
This time, the focus is on Magdaleno Mendoza, a longtime promoter whose role went far beyond passive marketing. Prosecutors say Mendoza functioned as a key distribution node for the scheme, bringing in victims directly and sustaining cash flow at moments when the operation depended on constant new deposits to survive.
Key takeaways
A senior IcomTech promoter has been sentenced to nearly six years in prison for his role in the crypto Ponzi scheme
Prosecutors say promoters were central to recruiting victims, particularly within Spanish-speaking communities
Authorities ordered prison time, restitution, and asset forfeiture as part of a broader crackdown on crypto fraud
Rather than sitting behind the scenes, Mendoza was described as a visible face of IcomTech. He traveled extensively, hosted in-person events, and pitched the platform as a legitimate crypto opportunity to individuals with little or no investment background. Federal officials emphasized that many of those targeted were members of Spanish-speaking, working-class communities who trusted Mendoza personally.
The court ultimately sentenced Mendoza to nearly six years in prison, citing both his role in the fraud and his unlawful reentry into the United States. But the prison term was only part of the punishment.
Money taken, assets seized
Beyond incarceration, Mendoza was ordered to return hundreds of thousands of dollars to victims and surrender more than $1.5 million tied to the scheme. Authorities also moved to confiscate his interest in a California home, which prosecutors said was purchased using illicit proceeds.
The financial penalties reflect a broader enforcement strategy: stripping promoters not only of their freedom, but of the assets that made participation in the scheme attractive in the first place.
A pyramid built on trust, not technology
IcomTech marketed itself as a crypto mining and trading business, promising steady, guaranteed returns. Investigators later determined that no meaningful mining or trading activity ever existed. New investor funds were used to pay earlier participants and to bankroll the lifestyles of promoters.
What set IcomTech apart, prosecutors argue, was not technological sophistication but social engineering. The scheme relied heavily on community trust, language familiarity, and in-person persuasion rather than online-only recruitment.
Regulators estimate that hundreds of victims across the U.S. and abroad were affected, with losses running into the millions.
Sentences paint a clear hierarchy
Mendoza’s conviction follows earlier sentences handed down to IcomTech’s top leadership. Founder David Carmona received a lengthy prison term after being identified as the architect of the operation, while another senior executive was sentenced earlier for his role in managing the scheme.
Taken together, the rulings map out how the organization functioned: leadership designed the fraud, senior promoters like Mendoza expanded it, and lower-level participants fed it.
A warning to crypto promoters
Federal officials have repeatedly stressed that crypto branding does not shield traditional fraud from prosecution. In fact, they argue it often makes schemes more dangerous by adding complexity and perceived legitimacy.
The continued sentencing of IcomTech figures signals that enforcement efforts are far from over. For regulators, the case is not just about one collapsed platform, but about deterring future schemes that exploit emerging technology to disguise old-fashioned financial crimes.
As courts continue working through the remaining cases, the message is becoming clearer: being a promoter is no longer a safe distance from accountability.
