The Federal Bureau of Investigation (FBI) announced this Tuesday its arrest of a 24-year-old Rhode Island crypto trader on allegations of defrauding investors for over $5 million via his “Coin Signals” crypto funds. As per the announcement, the young crypto trader, namely Jeremy Spence, operated his crypto fraud schemes primarily on Discord and Twitter for two years – between 2017 and 2019.
Spence’s Coin Signals funds reportedly ran the value of its cryptos to the ground, purposefully losing millions and millions of investor dollars. According to the official complaint sent to the Federal Court, Spence tried to cover up these losses by channeling more than $2 million worth of Bitcoin (BTC) and Ethereum (ETH) funds from newcomers mirroring that of a Ponzi scheme.
On top of that, he also apparently faked several account balances to lead Coin Signals investors to think that they are still in the green. The complaint then noted that Spence once falsely told one of his investors that they managed to go up over 148% in a single month when actually he’s not.
Jeremy Spence now faces a total of 30 years prison time, 10 years for commodities fraud, while the other 20 years is for wire fraud. Now, the US authorities are in the hunt for the stolen BTC.