DOJ files charges against Ryan Ginster over MLM crypto fraud
Ryan Mark Ginster has been arrested on charges relating to multiple MLM crypto Ponzi schemes.
Ginster (right) is facing wire fraud and money laundering charges.
The DOJ’s criminal complaint primarily details Ginster’s operation of Social Profimatic, launched in 2018.
Social Profimatic was an MLM crypto Ponzi scheme touting an 8% daily ROI.
Subsequent crypto Ponzi schemes attributed to Ginster include Automatic Bitcome (2017), My Micro Profits (2020), eProfit Hub (2020) and Your Net Profits (2020).
Ginster set up some of his Ponzi schemes through HYIPs4U.
HYIPs4U, whose website is still operational, provided Ginster with Ponzi scripts and bogus UK shell incorporation.
BehindMLM has been calling out the UK government’s complicit support of MLM Ponzi schemes for years.
An affidavit supporting the DOJ’s criminal complaint concludes;
The evidence shows that GINSTER used the Subject Website and other websites to direct investors to send funds to bitcoin addresses controlled by him. GINSTER then transferred bitcoin from those addresses to an account he held at Coinbase as well as to other currency exchangers, gambling websites, and elsewhere.
GINSTER used Coinbase to convert bitcoin to US Dollars and then transferred those monies to a bank account held personally by GINSTER.
In total Ginster’s various Ponzi schemes took in over $5 million in cryptocurrency. Today the street value of that amount is even higher.
With the exception of UK shell companies, in the formation of which Ginster used his actual name, Ginster went out of his way to hide ownership of his Ponzi schemes.
Nonetheless a Special Agent with the Criminal Investigation Division of the IRS was able to tie Ginster to the scams, through
IP address information, domain name purchase records, bank records, cryptocurrency exchange account information, and cryptocurrency transaction information discovered in search of his residence.
Ginster’s residence was raided on February 23rd, 2021.
The DOJ filed their sealed criminal complaint against Ginster on November 16th.
Ginster was arrested in Los Angeles on November 18th. He has been formally charged with one count of wire fraud and five counts of engaging in monetary transactions to conceal or disguise.
As of yet Ginster’s criminal case has yet to appear on Pacer. I’ll check back tomorrow for updates.
The SEC has also filed a civil case against Ginster pertaining to the same fraudulent conduct.
Update 6th December 2021 – Ginster’s arraignment has been scheduled for January 5th, 2022.
A $100,000 unsecured bond was set as part of Ginster’s conditions of release on November 30th.