SPokane, WA – Michael Joseph McElhiney, a 37-year-old former Spokane resident, has pleaded guilty to Wire Fraud after defrauding investors of more than $350,000 through a cryptocurrency investment scheme.
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United States Attorney Vanessa R. Waldref announced the charges against McElhiney, who operated under the alias MAC Blockchain Solutions. The fraudulent scheme spanned from March 4, 2021, to September 10, 2022. According to court documents, McElhiney promised investors high returns on cryptocurrency investments, which he claimed were made in funds like Ethereum staking and cryptocurrency liquidity pools.
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McElhiney targeted his victims both offline and online, including individuals he met through dating apps and while playing the video game ‘Call of Duty’ under the username ‘Bing Bong’. He often developed personal relationships with victims before defrauding them. McElhiney promised investors their funds could be liquidated at any time for guaranteed returns.
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However, McElhiney used the money to gamble at casinos and other personal expenses, fabricating investment progress reports using a platform called Coin.FYI. He promised victims that withdrawals were delayed due to various reasons, including security breaches and theft, which was all a ruse to keep their funds.
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Waldref emphasized the impact of such fraud on victims: “Mr. McElhiney’s scheme targeted innocent investors, separating them from hard-earned money they needed for themselves and their loved ones.” She praised Homeland Security Investigations and the Spokane Police Department for their work in investigating the case.
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McElhiney is scheduled to be sentenced on September 25, 2024. The U.S. Attorney’s Office will continue to crack down on fraudsters who exploit innocent victims.
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Key Facts
- State: Washington
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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