The US Department of Justice has accused two individuals, one from Australia and the other from California, of orchestrating a series of cryptocurrency schemes and fraudulent activities, resulting in $25 million in damages to investors. According to the US Justice Department, David Saffron and Vincent Mazzotta operated on behalf of several organizations with different names, such as Federal Crypto Reserve, Circle Society, Bitcoin Wealth Management, Omicron Trust, Mind Capital, and Cloud9Capital.

These organizations promised American investors high profits through automated trading bots and subsequently spent the collected funds on a lavish lifestyle. When investors attempted to recover their money, representatives of Federal Crypto Reserve offered assistance in returning the funds. However, according to law enforcement agencies, Saffron and Mazzotta were the actual operators of the "federal reserve," and they communicated with investors under various aliases, such as Bitcoin Yoda, David Gilbert, Blue Wizard, and David Gabe.

Both individuals have been charged with conspiracy to launder money, fraud involving electronic communications, and obstruction of justice. They face a maximum sentence of 75 years in prison, with Saffron potentially receiving an additional 10 years for committing serious crimes while in custody.

It is worth noting that in 2019, the US Commodity Futures Trading Commission (CFTC) accused Australian Saffron of creating the cryptocurrency pyramid scheme known as Circle Society and ordered him to pay $32 million in compensation to investors and fines.