AlchemyCoin CEO Sentenced to 6 Years in Prison for Loan Fraud and ICO Fraud

Golden Financial said on Wednesday that the US Treasury Department sentenced the former fintech chief to six years in prison after pleading guilty to COVID-19 fraud and cryptocurrency fraud. Cheng is known to have raised $ 400,000 for Alchemy Coins, a seed loan that uses blockchain technology. The attorneys said Cheng deceived investors about the feasibility of the work and the legitimacy of the ICO on the matter. Cheng also filed a fraudulent loan application to secure a multi-million dollar "protection payment" loan from the US government's New Disease Funding Program. Cheng confessed to the costs in April. In addition to detention, he was sentenced to three years in detention and released, after which he will be forced to leave the United States.