A 25 -year cryptocurrency merchant from Rhode Island, Jeremy Spence, also known as “Coin Signals” on social networks, was sentenced to 42 months in prison. He was accused of defrauding 170 people for more than $ 5.37 million.
False investment funds
The Department of Justice (DOJ) issued a press release that said Spence had been operating several crypto -version funds between November 2017 and April 2019. These include Coin Signals Bitmex Fund, Coin Signals Alternative Fund and Coin Signals Alternative Coin Signals Term Fund.
Investors interested in the fund would transfer cryptocurrencies such as Bitcoin and Ethereum A Spence, who in turn made false promises of high yields. Judge Lewis Kaplan of the United States District Court for the Southern District of New York said:
“Spence requested more than $ 5 million through false statements, including that Spence’s cryptocurrency trade had been extremely profitable when, in fact, its trade was not profitable.”
Returns Claims of 148% monthly
On January 28, 2018, Spence published in an online chat group stating that their commercial skills generated yields of more than 148 percent in just one month. This encouraged investors to transfer additional funds to Spence. The Department of Justice continued to say:
In fact, Spence’s trade resulted in net losses in the accounts in which he negotiated investor funds during the same period of approximately one month. Spence used new funds to cover losses and make payments to former investors. This allowed him to continue cheating and raise more money. The Department of Justice added:
“To hide their commercial losses, Spence used new investor funds to pay other investors in a ponzi-esque way.”
A restitution bill of $ 2,847,743
Spence used cryptocurrencies of new investors for a value of approximately $ 2 million per judicial presentation to distribute the old investors. Judge Kaplan told the defendant:
“What caught my attention was the stupidity of the people you helped invest with you. There are real implications for these pranks and are serious. ”
Spence, who declared himself guilty last November, will also be released under three years supervision and must pay a restitution of $ 2,847,743 to those who were attacked.
