Gutemberg Dos Santos, a co-founder of fraudulent cryptocurrency scheme AirBit Club, was extradited from Panama on November 25, 2020, the Department of Justice confirmed today.

Dos Santos is charged by indictment with co-defendants Pablo Renato Rodriguez, Scott Hughes, Cecilia Millan, Karina Chairez, and Jackie Aguilar for their roles in an internationally coordinated fraud and money laundering ring involved in defrauding individuals through investments in AirBit Club, a purported cryptocurrency mining and trading company. Dos Santos will be presented later today before U.S. Magistrate Judge Katharine H. Parker.

Dos Santos and his co-conspirators participated in a coordinated scheme in which investors were induced to invest in AirBit Club based on the promise of guaranteed profits in exchange for cash investments in club “memberships”. Beginning in late 2015, AirBit Club, through its founders and its promoters marketed AirBit Club as a multilevel marketing club in the cryptocurrency industry. Promoters falsely promised victims that AirBit Club earned returns on cryptocurrency mining and trading and that the victims would earn passive, guaranteed daily returns on any membership purchased.

While the victims saw “profits” accumulate on their online portal, those representations were false: No Bitcoin mining or trading on behalf of victims in fact took place. Instead, Dos Santos and his co-conspirators enriched themselves, and spent victim money on cars, jewelry, and luxury homes, and financed more extravagant expos to recruit more victims.

In many instances, as early as 2016, victims who attempted to withdraw money from the AirBit Club Online Portal and complained to a promoter were met with excuses, delays, and hidden fees amounting to more than 50% of the victim’s requested withdrawal, if they were able to make any withdrawal at all.

Dos Santos is charged with one count of conspiracy to commit wire fraud, one count of conspiracy to commit bank fraud, and one count of conspiracy to commit money laundering. The wire fraud conspiracy and money laundering conspiracy charges each carry a maximum term of 20 years in prison, and the bank fraud conspiracy charge carries a maximum term of 30 years in prison.