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.
Update 16th February 2022 – A status conference and preliminary examination, previously scheduled for March 9th, has been rescheduled for May 27th.
The DOJ requested the extension on February 4th, stating “the parties need additional time to meet and confer, and to review materials relevant to this case”.
Update 3rd September 2022 – Delays due to the size of the case against Ginster have continued throughout 2022.
As at the time of this update, the preliminary examination hearing, scheduled for September 2nd, has been rescheduled for October 8th.
I’ll try to keep the article updated if the October 8th hearing is again rescheduled. If you’re reading this, it’s past October 8th and there’s no updates below, assume the hearing is still in delay limbo.
Update 8th October 2022 – Not sure why but Ginster’s primary case number was changed.
Looking at the “new” case docket, Ginster’s arraignment was held on September 28th. At his arraignment, Ginster pled not guilty.
A Plea Hearing has been scheduled for November 16th.
The DOJ has also filed for permission to set up a victim notification website. A decision on that motion remains pending.
Update 30th October 2022 – The DOJ’s victim notification website motion was approved on October 11th.
Update 17th November 2022 – As per a granted November 14th joint stipulation filing, Ginster’s Change of Plea hearing has been continued to December 14th.
No reason for the delay was provided in the stipulation filing.
Update 15th December 2022 – Ryan Ginster has pled guilty to one count of wire fraud.