Former Rugby Player Sentenced in $900K Crypto Mining Scheme

Daniel De Carteret, a former rugby player, has been sentenced to four years and eight months in Auckland District Court for fraud. The 41-year-old De Carteret pleaded guilty to a fraud charge related to a $900,000 NZD cryptocurrency mining Ponzi scheme. The fraudulent activity began in 2020 when De Carteret convinced victims to invest in a cryptocurrency mining venture. He promised high returns through the use of advanced mining equipment, but instead used the funds to pay off earlier investors and for personal expenses. Investigations revealed that De Carteret possessed no mining equipment or relevant expertise. He accumulated over $900,000 NZD from 14 investors, primarily friends and acquaintances. The case has significantly impacted the victims, who lost their savings and investments. During the sentencing hearing, the judge expressed strong disapproval of De Carteret’s conduct, describing it as a “gross breach of trust”. He emphasized that the sentence reflected the severity of the crime and its impact on the victims. De Carteret was also ordered to pay reparations to the affected investors. This case serves as a cautionary tale for investors to exercise caution and verify investment ventures before committing funds, especially in the highly volatile and fraud-prone cryptocurrency space.