A cryptocurrency dealer accused of constructing false representations in reference to funds he operated has been charged with commodities fraud and wire fraud offenses. Jeremy Spence, 24, who additionally goes by the sobriquet “Coin Indicators,” allegedly took cryptocurrency value over $5 million from greater than 170 traders.
The US Lawyer’s Workplace for the Southern District of New York stated Spence lured traders to his alleged cryptocurrency funding rip-off by claiming that his buying and selling of investor funds had generated a return of greater than 148% in only one month. However in accordance with the criticism towards him that was unsealed in Manhattan federal courtroom, Spence’s buying and selling had been “persistently unprofitable” and used new investor funds to pay again different traders—the hallmark of a Ponzi scheme. The criticism alleges Spence distributed cryptocurrency value not less than $2 million to traders from funds beforehand deposited by different traders.
“Spence’s investments not solely failed to achieve his audacious claims, they persistently misplaced cash, leaving a $5 million void in his purchasers’ crypto accounts,” Manhattan US Lawyer Audrey Strauss stated in an announcement. “Spence’s alleged conduct ought to strongly sign would-be traders to completely educate themselves within the cryptocurrency ecosystem earlier than falling prey to funding scams promising enormous returns for small investments which are certainly too good to be true.”
Spence solicited investments for a number of funds, the most important and most energetic of which had been the Coin Indicators Bitmex Fund, the Coin Indicators Different Fund, and the Coin Indicators Lengthy Time period Fund. Traders seeking to put money into a fund would switch cryptocurrencies akin to Bitcoin and Ethereum to Spence to make the funding.
To stop traders from making redemptions, and to proceed to boost cash from them, Spence allegedly created faux account balances that he made accessible to traders on-line that falsely confirmed they had been getting cash as a substitute of precisely reporting the buying and selling losses Spence was racking up.
Spence is charged with one rely of wire fraud, which carries a most sentence of 20 years in jail, and one rely of commodities fraud, which carries a most sentence of 10 years in jail.