The US trader has confessed to a $5 million crypto fraud
If convicted on all charges, he faces up to 30 years in prison
![The US trader has confessed to a $5 million crypto fraud](https://storage.getblock.net/source/1/Lffn7e5fcZCf6wnuyAwiaEj6EG37_iwP.png)
02.12.2021 - 10:15
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What’s new? The federal prosecutors have charged the Rhode Island-based cryptocurrency trader with defrauding investors of $5 million. The US Department of Justice said Jeremy Spence, known as Coin Signals, defrauded investors for about two years.
Information on the website of the US Department of Justice
How did events develop? Between November 2017 and April 2019, the trader lured investors into the cryptocurrency investment pools created and managed by him. Spence claimed to be profitable trading on the cryptocurrency markets and attracted investors by guaranteeing high returns. The trader promised investors 148% or more annual returns.
In reality, his trading was unprofitable, so he falsified profit data and provided investors with forged documents. Spence used the funds from new investors to pay off the old ones.
What awaits the scammer? If Coin Signals is convicted on all charges, he faces up to 30 years in prison. However, his prison sentence has been reduced to 10 years amid cooperation with the investigation. The Commodity Futures Trading Commission (CFTC) has charged Spence with fraud in a separate case, seeking damages, a permanent ban on trading, and monetary fines.
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