The founder of Coin Signals, 25-year-old Jeremy Spence, has pleaded guilty to luring investors to his crypto fund scam. Over 170 investors lost more than $5 million for various fraudulent funds that Spence operated under false representations and promises of up to 148% returns.
False statements resulted in investors providing Spence with additional funds.
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Some of Spenceโs false representations included him stating that his trading is extremely profitable when in reality, it had always been unprofitable. According to the Department of Justice:
โTo hide his trading losses, SPENCE used new investor funds to pay back other investors in a Ponzi-like fashion. In total, SPENCE distributed cryptocurrency worth approximately $2 million to investors substantially from funds previously deposited by other investors.โ
Pleading guilty to commodities fraud, Spencer will face a maximum of 10 years in prison.
On The Flipside
- As U.S. Attorney Damian Williams reported in Jeremy Spenceโs case, โthe bourgeoning cryptocurrency market can be attractive to investors; however, investors should be aware of the inherent risks, including the risk of fraud.โ