A trader from Coin Signals is reported to have led a fraudulent crypto scheme that put in for approx $5 million from investors
Recently a 25-year-old cryptocurrency trader belonging to Rhode Island, which is popularly known as Coin Signals was sentenced for imprisonment by The United States Department Of Justice or DOJ. The culprit will have to face 42 months in prison for soliciting about $5million while defrauding more than 170 people in the Ponzi crypto scheme.
As per the official press release, Jeremy Spence who’s the main convict had solicited the investor’s funds through several pools of crypto investments which he used to run from month of November in the year 2017 to April of the year 2019. Spence created and was able to manage several funds aligned with crypto that including the three biggest funds that were the Coin Signal’s fund of BitMex, Alternative fund of Coin Signals and the Long Term fund of Coin Signals.
The convict of the ponzi scheme claimed that the trade he was conducting was doing well and also generated huge profits that prompted investors for sending cryptocurrencies to him including bitcoin (BTC) and ethereum (ETH) in order to operate on their behalf. He even posted that, at that point, a message in a chat group available online that falsely claimed that his trading of funds belonging to investors over several past months had also generated a fund return that amounted to more than 148% that resulted in some investors sending the additional funds to him. However the Justice Department pointed out that claims that Spence made were way far from the real truth.
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The DOJ stated that Spence has solicited a fund of more than $5 million via false representations that included the crypto trading fund of Spence that had been highly profitable when the trading of Spence in fact, had been unprofitable consistently. Over the same period, in fact, which is approx of one month trading of Spence resulted in loss within the accounts in which he made investments of investor’s funds.
In order to cover up the total losses that were made and he incurred while investors’ funds were trading where Spence created account balances that were false and to keep the raising of money continuing and it started operating a whole Ponzi scheme.
Source: https://www.thecoinrepublic.com/2022/05/15/do-you-know-for-how-many-years-this-crypto-fraudster-of-5m-has-been-imprisoned/