US Trader “Coin Signals” Caught Ponzi Scam

  • A fraudster who created a criminal scheme in the field of cryptocurrencies was convicted in the United States
  • He built a pyramid scheme, extorting more than 5 million euros from the victims
  • He will spend the next three and a half years in prison.

On Wednesday, May 11, the court found 25-year-old trader Jeremy “Coin Signals” Spence of Rhode Island guilty of fraud. He organized a Ponzi pyramid scheme, deceiving 170 people.

The crypto trader will spend the next three and a half years in a general security prison. The damage from his scheme is estimated at more than $5 million.

Principle of operation “pyramids” Spence was extremely simple – he repaid obligations to investors through new receipts, and at the same time claimed that his scheme was extremely profitable.

Between 2017 and 2019, he scammed a lot of people by running three funds. Each time, he forged reports, displaying non-existent account balances so that investors would continue to send him money.

Spence pleaded guilty. After he is released, the fraudster will have to pay compensation in the amount of $ 2.8 million.

What is a “Ponzi scheme”?

In fact, this is a synonym for a financial pyramid. In such a structure, the old members of the organization receive income by attracting new capital. In recent years, such fraud in the field of cryptocurrencies is gaining momentum.

One of the most famous pyramids is the OneCoin project, which appeared in 2014. It was created by Ruzhi Ignatova. For three years, the pyramid has attracted about 4 billion euros.

OrganizersPonzi schemes” in the crypto sphere offer “guaranteed” profit on non-existent pools. In some cases, the first investors do receive income, but the result is always the same – the organizer tries to hide with all the capital. Read more about “Ponzi scheme” and the OneCoin scandal, read our material.

Author of articles on trading and investments, which I have been doing for more than 8 years. Even from your phone, you can open a deal, buy shares, build up capital in assets that will bring dividends even when you stop working. You can't just not think about it.

Leave a Reply

Your email address will not be published.