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.
Some of Spence’s 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:
“To 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.”
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 Spence’s case, “the bourgeoning cryptocurrency market can be attractive to investors; however, investors should be aware of the inherent risks, including the risk of fraud.”