A California lawyer has admitted to being involved in a $9.5 million cryptocurrency Ponzi scheme and faces up to five years in prison

ChainCatcher news reports that disbarred California lawyer David Kagel has admitted to orchestrating a cryptocurrency Ponzi scheme that defrauded victims of over $9.5 million. The 85-year-old Kagel promised high returns through an artificial intelligence trading bot and falsely claimed to hold $11 million in Bitcoin to ensure the safety of investments. He exploited his identity as a lawyer to gain trust, providing forged letters on fake company letterhead to support his false claims.

Kagel and his accomplices did not make any investments but instead used the funds for personal gain. Kagel faces a maximum of five years in prison, with sentencing scheduled for September 10. Co-conspirators David Gilbert Saffron and Vincent Anthony Mazzotta Jr. have also been charged for their involvement in the scheme and are awaiting trial.