Pleading guilty to the charges of managing and founding several cryptocurrency funds To lure investors into his crypto investment scheme. According to the U.S. Department of Justice, his funds lost consistently and the scam resulted in a loss of $5 million for investors.
Investors Scammed Into Investing in Coin Signals’ Funds
U.S. Department of Justice announced Tuesday that Jeremy Spence, aka Coin Signals, pleaded guilty to a scheme for fraudulent cryptocurrency investments.
Spence “solicited over $5 million from more than 170 individual investors for various cryptocurrency funds that he operated, after making false representations in connection with these funds,” the DOJ explained. Spence was indicted on June.
U.S. Attorney Damian Williams detailed:
Jeremy Spence, a/k/a, ‘Coin Signals,’ admitted today to luring investors to his cryptocurrency investment scam by touting fictitious historical returns of up to 148%.
“In reality, Spence’s investments consistently lost money, and his scam left investors with a $5 million loss,” the Justice Department continued.
Spence approached investors about several cryptocurrency funds that he had created and managed, from November 2017 to April 2019. The Coin Signals Bitmex Fund, Coin Signals Alternative Fund and Coin Signals Long Term Fund were his largest and most active funds.
This was noted by the Department of Justice:
To participate in a fund, investors would send cryptocurrency (ethereum and bitcoin) to Spence so that Spence could invest them.
“To hide his trading losses, Spence used new investor funds to pay back other investors in a Ponzi-like fashion,” the DOJ described, adding that he “distributed cryptocurrency worth approximately $2 million to investors substantially from funds previously deposited by other investors.” The Justice Department elaborated:
Spence (25 years of age) pleaded guilty in commodities fraud. The maximum sentence is ten years imprisonment.
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