A key figure in a multimillion-dollar crypto fraud that used fake AI trading bots and a bogus federal agency has pleaded guilty to money laundering and conspiracy to obstruct justice, U.S. authorities said today.
Vincent Anthony Mazzotta Jr admitted to helping run the scheme, which promised investors high returns through non-existent AI-powered crypto trading firms. The U.S. Department of Justice said Mazzotta used companies like Mind Capital and Cloud9Capital to move investor money into personal luxury spending.
Prosecutors say Mazzotta and others created a fake entity called the “Federal Crypto Reserve” to convince victims they were under official investigation, charging them thousands of dollars for supposed compliance checks — all while the firms had already vanished with their funds.
Mazzotta faces up to 15 years in prison. His sentencing date has not been set.
The case is tied to a broader investigation involving co-defendant David Saffron, who has pleaded not guilty and is due to stand trial on Sept. 16. Another man, David Kagel, was sentenced in October to five years’ probation and ordered to pay nearly $14 million in restitution after pleading guilty to conspiracy to commit commodity fraud.
Court filings show the fraud ran from late 2017 to mid-2023. During that time, victims’ money was allegedly funneled through crypto mixers and spent on private jets, high-end hotels, mansion rentals, a personal chef, and bodyguards. The group operated through a network of front companies, including Circle Society, Bitcoin Wealth Management, and Omicron Trust.
Mazzotta used several aliases — including Anthony, Delta Prime, and Director Vinchenzo — while Saffron went by names like David Gilbert, Dave Gabe, “The Blue Wizard,” and “Bitcoin Yoda.”
Prosecutors say Mazzotta also helped destroy evidence at Saffron’s apartment after his indictment in 2022, including smashing an iPad and altering business records.
Saffron, who has been in custody since last August, faces multiple charges including wire fraud and money laundering.
The case is being handled by the U.S. Attorney’s Office in Los Angeles and the IRS Criminal Investigation division.
