Don’t do the crime if you can’t do the time. Jeremy Spence, aka Coin Signals, was sentenced to 42 months in prison for operating a series of crypto funds claiming to make big returns but were actually losing money and instead operated as a Ponzi scheme.
guilty to commodities fraud in November 2021 for soliciting over $5 million from unwitting crypto investors by creating various cryptocurrency funds from November 2017 until April 2019, which he falsely claimed were making returns but were actually making losses.
One example provided by the DOJ said Spence posted a message to an online chat group claiming that one of the funds made a 148% return that month.“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.”
Seeking to make a profit, investors would transfer crypto to Spence to invest, but as his trades weren’t making gains, he created fake account balances to hide the losses. Spence started operating a Ponzi scheme using funds from new investors to pay earlier investors, with estimates that around $2 million worth of cryptocurrencies were distributed in this manner.
Cointelegraph requested a comment from Spence’s legal representatives but did not receive a response by the time of writing.
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