A cryptocurrency fund supervisor has been charged in a U.S. federal courtroom. He allegedly took over $5 million from traders all for investing in his crypto funds, promising them excessive returns. In actuality, he was operating a Ponzi scheme and is now dealing with as much as 30 years in jail.
Crypto Fund Supervisor Arrested for Working a Ponzi Scheme
The U.S. Division of Justice (DOJ) introduced Tuesday that Jeremy Spence has been arrested and charged in Manhattan federal courtroom in a fraudulent cryptocurrency scheme. The 24-year-old from Bristol, Rhode Island, is often known as “Coin Indicators.”
Spence is “a cryptocurrency dealer who solicited funds for varied cryptocurrency funds that he operated, with commodities fraud and wire fraud offenses,” the DOJ described, including:
Spence took cryptocurrency value over $5 million from greater than 170 particular person traders after making false representations in reference to these cryptocurrency funds.
U.S. Lawyer Audrey Strauss defined that the defendant “allegedly lured traders to his cryptocurrency funding rip-off by touting returns of as much as 148%.” Nevertheless, his funding swimming pools persistently misplaced cash.
FBI Assistant Director-in-Cost Sweeney additional detailed that Spence allegedly “used cash from new traders to repay others with the intention to maintain his plan shifting — a typical marker of a Ponzi scheme.”
In keeping with the Justice Division, from November 2017 by April 2019, Spence solicited traders for a number of cryptocurrency funding funds that he had created and managed. Buyers “would switch cryptocurrency, akin to bitcoin and ethereum,” to him to put money into the funds for them. The DOJ elaborated:
The most important and most energetic of which had been the Coin Indicators Bitmex Fund, a/okay/a the ‘CS Mex Fund,’ the Coin Indicators Various Fund, a/okay/a the ‘CS Alt Fund,’ and the Coin Indicators Lengthy Time period Fund.
Spence is charged with one depend of commodities fraud, which carries a most sentence of 10 years in jail, and one depend of wire fraud, which carries a most sentence of 20 years in jail.
The Commodity Futures Buying and selling Fee (CFTC) has additionally filed a federal civil enforcement motion in opposition to Spence, charging him with fraud for working the Ponzi scheme.
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