**Cryptocurrency Investment Scam Uncovered in Spokane**
A former Spokane resident has been indicted for a cryptocurrency investment scam that defrauded investors out of more than $350,000.
According to a grand jury indictment, Michael Joseph McElhiney, 37, operated a cryptocurrency investment fund called MAC Blockchain Solutions, promising investors guaranteed or variable returns on their investments.
However, the indictment alleges that McElhiney never invested the funds provided by investors, but instead kept them for his own personal use.
The indictment alleges that McElhiney used a platform called Coin.FYI to show investors fabricated figures intended to convince them that their investments were appreciating in value.
“Cryptocurrency fraud is a new variation on the same old song and dance of investment fraud,” said United States Attorney Vanessa R. Waldref. “Whether it’s cryptocurrency fraud, multilevel pyramid scams, real estate scams, old-fashioned Ponzi schemes, or other investment fraud vehicles, we will work closely with our law enforcement partners to hold fraudsters accountable when they prey on innocent members of the community in order to line their own pockets.”
The fraud charges against McElhiney carry a maximum sentence of up to 30 years in federal prison.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations, Spokane Resident Agency, and the Spokane Police Department.
Assistant United States Attorneys Dan Fruchter and Tyler Tornabene are prosecuting the case on behalf of the United States.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
**Case Details**
Defendant: Michael Joseph McElhiney
Criminal Charges: Thirty-three counts of fraud
City and State: Spokane, Washington
Exact Date: March 2021 – September 2022
Sentence or Outcome: Currently pending
Dollar Amounts: More than $350,000
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Key Facts
- State: Washington
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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