Regulations in the crypto sector have been serving their good over a long time, and it has been one reason why some traders are moving into the industry. Even though frauds and scams can be easily carried out using digital assets because of its anonymous feature, regulators have always done their bit to reduce it to a bare minimum.
Even though the United States Securities and Exchange Commission has been in the news for reasons that are not palatable to most investors, they have scored another big one in tackling crime in the sector. In their recent statement, the regulatory body mentioned that it had apprehended a malicious actor who has scammed about 170 investors off around $5 million in a Ponzi scheme over the years.
SEC said the illicit actor lured investors in with fake promises
The charge sheet read at the Manhattan Court, where the perpetrator, Jeremy Spence, who goes by his pseudonym, Coin Signals, was arrested for the illicit gathering of funds for all his crypto funds. Arguing in court, the prosecutor said that Jeremy Spence should be locked behind bars for a long time due to the offenses he committed. Jeremy Spence was said to have committed offenses ranging from wire fraud to commodities fraud and others.
According to the statement that was released by the SEC, investors claimed that they have been sending Spence several digital assets ranging from the leading asset, Bitcoin, to Ethereum and others so he would invest on their behalf.
Giving his review of the whole case, the Chief in charge of the FBI, William Sweeney Jnr, said that Spence persuaded the investors on the platform’s success level, which pushed most of them to surrender their hard-earned funds in no time. The officer said that his modus operandi was simple, he persuades his victims and pays them using money that other victims bring in.
Spence could spend up to 30 years in prison
The FBI mentioned that his modus operandi was expected of a Ponzi scheme as there was never any proof that he invested the digital assets that he got from investors. According to the United States attorney in the Manhattan Court, Spence was able to lure in innocent investors with a promise to reward them with 148% profit on their respective investments.
The official statement noted that Spence kept going by several accounts; he could not back up his claims with actions as his venture showed a loss of cash. With the money that Spence lost while carrying out his malicious activities, his accounts showed that he was already in debt of up to $5 million, which belonged to investors.
The reading also mentioned that Spence was apprehended this morning, handed to authorities, who charged him to court immediately. If he is guilty of all the charges that have been leveled against him, Spence would be hoping for a miracle, and if it doesn’t happen, then he might go to jail for nothing less than 30 years.