A U.S. federal court has sentenced a senior promoter of the collapsed IcomTech cryptocurrency scheme to nearly six years in prison, reinforcing authorities’ hard line against crypto-related fraud.
Magdaleno Mendoza was sentenced to 71 months in prison by the U.S. District Court for the Southern District of New York for his role in the large-scale IcomTech Ponzi scheme and for illegally reentering the United States after deportation. Mendoza pleaded guilty in July 2025 to conspiracy to commit wire fraud and illegal reentry.
According to the U.S. Attorney’s Office, IcomTech launched in mid-2018 as a purported cryptocurrency mining and trading company. In reality, it operated as a multi-level marketing Ponzi scheme, using funds from new investors to pay earlier participants and enrich promoters.
Targeting vulnerable communities
Prosecutors said Mendoza was one of IcomTech’s most senior promoters and remained in regular contact with founder David Carmona. He and other promoters primarily targeted working-class, Spanish-speaking investors, many of whom had little prior experience with cryptocurrency.
IcomTech promoters traveled across the United States, hosting lavish expos and small community presentations, often displaying luxury cars and designer clothing to project legitimacy. Mendoza also hosted promotional events at his restaurant in the Los Angeles area, where he collected thousands of dollars in cash from victims.
Victims were shown online dashboards displaying apparent profits, but most were unable to withdraw funds and ultimately lost their entire investment. As complaints mounted, IcomTech introduced a proprietary token known as “Icoms,” falsely claiming it would gain real-world value. Prosecutors said the tokens were essentially worthless and caused further losses.
By late 2019, IcomTech stopped making payments altogether and collapsed. Court filings state that Mendoza later went on to promote at least three additional cryptocurrency Ponzi schemes.
In addition to prison time, Mendoza was ordered to pay $789,218.94 in restitution, forfeit $1.5 million, and surrender his residence in Downey, California, which authorities say was purchased using proceeds of the fraud. Several other IcomTech leaders and promoters have already been convicted and sentenced in related cases.
The prosecution involved Homeland Security Investigations’ El Dorado Task Force, with assistance from the Securities and Exchange Commission and the Commodity Futures Trading Commission, underscoring continued U.S. enforcement focus on crypto investment fraud.