A New York federal judge has sentenced Dwayne Golden to over eight years in prison for leading a fraudulent cryptocurrency investment scheme that stole more than $40 million from unsuspecting investors.
Golden, 57, ran EmpowerCoin, ECoinPlus, and Jet-Coin—three sham companies that promised guaranteed profits from crypto trading. Prosecutors revealed there was never any trading activity; instead, the funds were used to repay earlier investors or personally enrich the scheme’s organizers, fitting the classic mold of a Ponzi operation.
The scam ran for just four months in 2017, but its impact was long-lasting. When the firms abruptly shut down, investors were left with nothing. Golden and his co-conspirators then tried to cover their tracks by obstructing federal investigations and destroying evidence.
“None of these companies ever traded a single cryptocurrency,” U.S. Attorney Joseph Nocella said, calling the operation a calculated exploitation of crypto hype.
Golden was ordered to forfeit $2.46 million. One co-defendant has already received a 30-month sentence, while two others await sentencing.
Authorities urge victims to file restitution claims via the FBI’s portal, warning that similar scams continue to spread. In a related case, five individuals recently admitted to running a $36.9 million crypto scam with links to Cambodia. According to blockchain security firm CertiK, more than $2.1 billion has already been lost to crypto fraud in 2025 alone.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/crypto-ponzi-mastermind-sentenced-to-8-years-over-40m-fraud/