Paycoin (XPY) / GAW Miners
A 2014–2015 virtual currency created by Homero 'Josh' Garza via GAW Miners/ZenMiner. The SEC and DOJ said it was a Ponzi scheme built on 'Hashlets' that didn't exist plus false claims of a $100M reserve. Garza pleaded guilty to wire fraud; victims lost $9M+.
Also known as: Paycoin, PayCoin, XPY, GAW Miners, ZenMiner, Josh Garza, Homero Joshua Garza
Summary
PayCoin (XPY) was a virtual currency created in late 2014 by Homero Joshua "Josh" Garza through his companies GAW Miners and ZenMiner. The SEC and DOJ said Garza ran a Ponzi scheme: he sold "Hashlets" — shares of cloud-mining power that largely did not exist — then launched PayCoin, falsely claiming a $100 million reserve would keep its price above $20 and touting bogus partnerships with major companies. [1][2]
Outcome
PayCoin's price collapsed and investors lost more than $9 million. Garza pleaded guilty to wire fraud and was sentenced in 2018 to 21 months in prison, followed by supervised release, and ordered to pay about $9.18 million in restitution. [1][2]
Bracketed numbers refer to the numbered sources listed below.
People & entities involved
Sources (2)
See also
- Bitcoin Latinum (LTNM)TokensA ~$16M token offering (SAFTs for 'Bitcoin Latinum' / LTNM) that the SEC charged in 2026 as fraud: founder Donald Basile falsely called LTNM 'the world's first insured digital asset' backed by an 'existing trust,' neither of which existed, and diverted investor funds for personal use (including a $160,000 horse).
- Loci (LOCIcoin)TokensA 2017–2018 ICO for 'LOCIcoin' tied to the InnVenn IP-search platform. The SEC charged Loci and CEO John Wise with fraud for raising $7.6M on false claims about revenue, headcount, and user base; Wise also misused investor funds. Settled with a $7.6M penalty and an officer/director bar.
- Blockchain Terminal (BCT)Tokens
This page was last updated on Jun 8, 2026. View revision history.