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A antheral astatine the halfway of a monolithic crypto Ponzi strategy volition walk astir 8 years down bars aft a national justice handed down a 97-month situation condemnation successful Brooklyn connected Friday.
Dwayne Golden, 57, was convicted of ligament fraud and wealth laundering for his relation successful orchestrating scams done 3 integer plus firms, EmpowerCoin, ECoinPlus, and Jet-Coin, which defrauded investors retired of much than $40 million, the Department of Justice (DOJ) announced.
Federal prosecutors said Golden and his partners promised guaranteed returns from crypto trading that ne'er took place. Instead, funds were funneled into repaying earlier investors oregon lining the conspirators’ pockets, classical hallmarks of a Ponzi scheme.
The companies folded soon aft collecting capitalist deposits, leaving victims with dense losses.
An excerpt of the filing the DOJ. Source: DOJRelated: Citibank accused of ignoring signs of $20M crypto romance scam
Fake crypto trading firms
The scam operated betwixt April and August 2017. Golden, on with Gregory Aggesen and Marquis Egerton (also known arsenic Mardy Eger) falsely marketed their firms arsenic planetary crypto traders.
After their companies collapsed, Golden and his co-defendants attempted to obstruct some a Federal Trade Commission probe and a national expansive assemblage investigation, including by destroying grounds and providing mendacious information.
“Golden and his co-defendants offered nary morganatic services and nary of the companies engaged successful immoderate existent trading successful cryptocurrency arsenic they claimed,” United States Attorney Joseph Nocella said, describing the scheme arsenic an exploitation of capitalist excitement implicit caller technology.
Golden was besides ordered to forfeit astir $2.46 million. Co-defendant William White received a 30-month sentence, portion Aggesen and Egerton are awaiting sentencing.
FBI Assistant Director Christopher Raia called the conspiracy “an elaborate strategy rooted successful deceit and mendacious promises to swindle investors.” He stressed that Golden’s actions showed “an utter disregard for integrity” and praised the condemnation arsenic a informing to different would-be scammers.
The DOJ asked investors who suffered losses from the strategy to taxable restitution claims done the FBI’s dedicated portal.
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Five plead blameworthy successful $37M crypto scam
In a akin incident, earlier this month, 5 men pleaded blameworthy to orchestrating a $36.9 million crypto scam that defrauded Americans and funneled funds to a crypto scam halfway successful Cambodia.
The defendants targeted victims done societal media, messaging apps, and dating platforms, luring them with mendacious promises of profitable crypto investments.
So acold successful 2025, over $2.1 cardinal has been stolen successful crypto-related incidents, with astir losses tied to wallet compromises and cardinal mismanagement, CertiK co-founder Ronghui Gu said.
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