Crypto trader sentenced to $ 3.5 million for $ 5 million fraud

The U.S. Department of Justice (DJ) has sentenced Rhode Island, a 25-year-old cryptocurrency trader and Coin Signalist, to 42 months in prison for defrauding more than $ 170 million.

Coin tokens trader sentenced.

According to an official press release, criminal Jeremy Spain has demanded money from investors in several crypto investment pools that ran from November 2017 to April 2019.

Creates and manages several crypto currencies, including the three largest – Coin Signals Bitmex Fund, Coin Signal Alternative Fund and Coin Signal Long Term Fund. He encouraged investors to send cryptocurrencies such as BTC and ETH on their behalf, saying that the trade was in good shape and that it was making huge profits.

Using false claims to attract investors

At one point last month, he posted a message on a fake online chat group that the investor fund business had returned more than 148%. As a result, some investors sent him extra money.

The Justice Department has ruled that Spain’s claim is unfounded.

“SPENCE has falsely claimed more than $ 5 million, which is why SPENCE Crypto business is so lucrative.

In fact, during the same period, for almost a month, SPENCE traded a net loss on its investment fund, ”said the DOJ.

Spain continued to raise funds to cover its net losses in trading with the Investors’ Fund, and the Ponzi scheme began to operate.

He used the money from new investors to pay for the old ones and kept the plot going for as long as possible. It plans to distribute over $ 2 million worth of crypto assets to investors.

“Instead of accurately reporting the loss of SPENCE, they are falsely suggesting that the account will allow investors to invest in SPENCE,” Dodge added.

Spence Pleds guilty

A.D. In January 2021, Spain was arrested by the Federal Bureau of Investigation (FBI) and charged with felony criminal mischief by the CFTC. He pleaded guilty in November 2021.

In addition to his 42-month prison term, Spain will receive three years’ probation after his release and will receive a fine of more than $ 2 million.

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