Crypto News: Terrible Crypto Trader Gets 42 Months For Fraud

Crypto News – A terrible crypto trader has been sentenced to 42 months for fraud, claiming he was a total gun

iexclusivenews reports that May 11, a crypto trader was sentenced to 42 months in prison for operating a series of cryptocurrency funds. that claimed to offer significant profits but were really losing money and functioned as a Ponzi scheme.

The Department of Justice said that Jeremy Spence, 25, had obtained millions of dollars through false promises.

“including that Spence’s crypto trading had been extremely profitable when, in fact, Spence’s trading had been consistently unprofitable.”

United States District Judge Lewis Kaplan of the US District Court for the Southern District of New York handed down the judgement to Spence

Who ran the social media channels for a crypto investment fraud dubbed “Coin Signals.” Spence was also given a three-year supervised release sentence and was forced to repay his victims $2.8 million.

The Federal Bureau of Investigation (FBI) detained Spence in January 2021, and the Commodity Futures Trading Commission filed separate civil charges against him (CFTC).

Spence pleaded guilty to commodities fraud in November 2021. For defrauding over $5 million from unknowing crypto investors. By fraudulently claiming that several cryptocurrency funds he created between November 2017 and April 2019 were profitable when they were really losing money.

iexclusivenews Nigeria understand that according to on example offered by the DOJ. Spence claimed in an online chat forum that one of the funds had made a 148 percent return that month.

According to Law360, the case was presided over by U.S. District Judge Lewis Kaplan, who said:

“The thing I was struck by was the stupidity of the people you gulled into investing with you, there are real-life consequences to these shenanigans and they are serious.”

Investors looking to profit would send bitcoin to Spence to invest, but because his trades were losing money, he generated phony account balances to disguise the losses.

Spence began operating a Ponzi scheme, collecting monies from new investors to pay earlier investors, distributing about $2 million in cryptocurrencies in the process.

Spence told Judge Kaplan in a court declaration that he is “mortified” by his own behavior, apologizing to his investors and claimed was unqualified to trade the amount he was sent adding he “entered a world that [he] was completely unprepared for”.

Meanwhile, this online news outlet understands that Cointelegraph requested comment from Spence’s legal representatives but did not receive a response within the time given.