US Prosecutors Charge Founder of 'IGOBIT' Token With Fraud

U.S. prosecutors charged Asa Saint Clair, the president of a nonexistent United Nations affiliate, with fraud Wednesday, alleging he defrauded investors using the IGOBIT digital token.

Prosecutors with the Southern District of New York alleged that Saint Clair lured investors to buy into the "World Sports Alliance" using his IGOBIT digital currency, promising investors equity the in organization from 2017 to September 2019.

According to the indictment, IGOBIT was never built, and the project's investors did not receive the tokens they were promised.

"As alleged, Asa Saint Clair used World Sports Alliance, a sham affiliate of the United Nations, as a vehicle to defraud lenders," Manhattan U.S. Attorney Geoffrey S. Berman said in a statement. "Saint Clair allegedly defrauded investors in IGOBIT, a digital currency he claimed WSA was developing, but which turned out to be the fraudulent bait with which to lure victim investors."

Instead, Saint Clair is said to have siphoned off the money for his personal use.

"Saint Clair allegedly touted his company as promoting the values of sports and peace for a better world, yet defrauded all those who invested in his sham company," Special Agent-in-Charge Peter Fitzhugh said in a statement. "As alleged, Saint Clair used the money he earned through deceit to fund a lavish lifestyle for him and his family."

Saint Clair faces up to 20 years in prison if convicted of wire fraud.

The World Sports Alliance did not immediately respond to CoinDesk request for comment.

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