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The founders and managers of several cryptocurrency funds have pleaded guilty Attract investors to participate in his crypto investment scam. According to the U.S. Department of Justice (DOJ), his fund has been losing money, and his scam caused investors to lose 5 million U.S. dollars.
Investors defrauded to invest in Coin Signals funds
The US Department of Justice (DOJ) announced on Tuesday that Jeremy Spence (aka Coin Signals) has admitted to a fraudulent cryptocurrency investment plan.
The U.S. Department of Justice explained that Spencer “raised more than $5 million from more than 170 individual investors for various cryptocurrency funds operated by him after making false statements about these funds.” Spencer is charged In June.
U.S. Attorney Damian Williams explained in detail:
Jeremy Spence, a/k/a, “Coin Signals”, today admitted to enticing investors to participate in his cryptocurrency investment scam by touting a fictitious historical return of up to 148%.
“In fact, Spencer’s investment has been losing money, and his scam has caused investors to lose 5 million US dollars,” the Department of Justice continued.
Spence recruited investors for several cryptocurrency investment funds he created and managed between November 2017 and April 2019. His largest and most active funds are Coin Signals Bitmex Fund (CS Mex Fund), Coin Signals Alternative Fund (CS Alt Fund) and Coin Signals Long-Term Fund.
The Department of Justice stated:
Investors who want to participate in the fund will transfer cryptocurrencies such as Bitcoin and Ethereum to Spence so that Spence can invest in it.
“In order to cover up his trading losses, Spence used new investor funds to repay other investors in a similar way to a Ponzi scheme,” the US Department of Justice described, adding that he “drew money from other investors’ previous deposits to other investors. Investors distributed cryptocurrency worth about US$2 million.” The Ministry of Justice elaborated:
Spence, 25, pleaded guilty to commodity fraud and can be sentenced to up to 10 years in prison.
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