Jeremy Spence, Cryptocurrency Fraud, New York 2018

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Table of Contents

Cryptocurrency Trader Sentenced to Prison in New York

A cryptocurrency trader from Rhode Island has been sentenced to 42 months in prison for defrauding over 170 victims in a cryptocurrency investment scheme.

Jeremy Spence, 25, of Bristol, Rhode Island, was sentenced by U.S. District Judge Lewis A. Kaplan on April 30, 2019, following his guilty plea to charges of cryptocurrency fraud.

According to the allegations, Spence solicited investments in various cryptocurrency investment pools, including the Coin Signals Bitmex Fund, the Coin Signals Alternative Fund, and the Coin Signals Long Term Fund. He promised investors that his trading had been extremely profitable, but in reality, his trading had been consistently unprofitable.

Spence used the funds he received from investors to pay back other investors in a Ponzi-like fashion, distributing cryptocurrency worth approximately $2 million to investors from funds previously deposited by other investors.

In addition to his prison term, Spence was sentenced to three years of supervised release and ordered to pay restitution in the amount of $2,847,743.00. The case was handled by the Office’s Securities and Commodities Fraud Unit, and Assistant U.S. Attorney Christine I. Magdo was in charge of the prosecution.

U.S. Attorney Damian Williams praised the investigative work of the Federal Bureau of Investigation and thanked the Commodity Futures Trading Commission for their assistance in the case.

The case highlights the risks and dangers of investing in cryptocurrency and the importance of doing thorough research before investing in any scheme.

Cryptocurrency investors are encouraged to be cautious and to report any suspicious activity to the authorities.