Second Circuit Upholds Conviction of Crypto Promoter for Misleading Investors About UN Ties
On Monday, February 5, 2024, the United States Court of Appeals for the Second Circuit upheld the conviction of cryptocurrency promoter Asa Saint Clair on fraud charges related to his role in an alleged scheme involving World Sports Alliance (WSA).
Saint Clair was convicted in 2022 in Federal court of wire fraud for misleading investors about WSA’s ties to the United Nations in an effort to drum up funding for a new cryptocurrency called IGObit. Prosecutors argued that Saint Clair knowingly made false claims that WSA worked with the UN when in reality it had no affiliation.
Several victims testified at Saint Clair’s trial that representations of a UN connection were an important factor in their decision to invest in IGObit, hoping to get in early on what they believed to be a UN-backed digital currency venture. However, the money soon stopped coming, and investors’ attempts to recoup losses or get answers from WSA went unanswered.
On appeal, Saint Clair argued that evidence obtained from his home office during a 2019 search should have been suppressed because the warrant was based on stale information. However, the three-judge panel rejected this claim, finding the warrant affidavit correctly noted the ongoing nature of the alleged criminal operation and the likelihood that evidence of crimes, such as obstruction, could still be present at the location.
Saint Clair also questioned whether prosecutors provided sufficient evidence that he purposefully misled investors. But the appeals court said trial testimony from victims established Saint Clair was aware of the falsity of his UN affiliation claims. Text messages he sent further supported he knew WSA had “lost IGObit sales” due to the lack of a relationship with the international body.
In addition, the Court ruled two prior act witnesses who had also invested in Saint Clair ventures without repayment were properly allowed under rules preventing unfair prejudice. Their experiences provided relevant context to his mindset and undermined arguments the current charges were a simple business failure.
With all challenges dismissed, the decision keeps intact the 42-month prison term handed down in 2022 over the cryptocurrency deception. It reaffirms the prerogative of prosecutors to pursue such specious cases involving the fraudulent promotion of virtual currencies or other technology investments. For Asa Saint Clair, it marks the end of appellate options in his quest to overturn a conviction related to misleading claims made in an effort to attract funding.
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