Crypto-trader Known As “Coin Signals” Pleaded Guilty To Defrauding Millions Of Investors By Promising Almost 150% Returns | Currency News | Financial and business news

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Andriy Onufriyenko

A 25-year-old cryptocurrency trader pleaded guilty on Tuesday to leading a $ 5 million Ponzi scheme. Jeremy Spence, who used “Coin Signals” online, lied to investors about the returns he was generating by trading cryptocurrencies. Spence told a prospect investor he was generating monthly returns of up to 148% as he lost money.

Jeremy Spence, known online to “Coin Signals”, pleaded guilty to executing a Ponzi scheme that cost more than 170 individual cryptocurrency investors $ 5 million.

Spence, 25, made false claims about his historic trading performance, which he used to trick potential investors into giving him money to negotiate. But while he touted monthly earnings of up to 148%, he was actually losing money, according to the United States Attorney’s Office for the Southern District of New York.

“The burgeoning cryptocurrency market can be attractive to investors; however, investors should be aware of the inherent risks, including the risk of fraud,” US Attorney Damian Williams said of the case.

From November 2017 to April 2019, Spence solicited investors in various crypto funds he had created, including the Coin Signals Alternative Fund and the Coin Signals Long Term Fund. Investors who wanted to participate would transfer cryptocurrencies, such as bitcoins and ethers, to him, and he would invest them on their behalf.

But because Spence was constantly losing money trading cryptocurrencies, he was raising money from new investors using fake performance data to fund his ongoing program. He failed to accurately report his losses and falsified account balances to show they were supposed to be making money.

Overall, he distributed cryptocurrencies worth around $ 2 million to investors, much of which came from funds previously deposited by other investors. Spence was originally indicted in January and is the subject of a civil action brought by the Commodity Futures Trading Commission, which is seeking millions of dollars in penalties and restitution for the victim’s losses.

His guilty plea to commodity fraud carries a maximum sentence of 10 years in prison. He is expected to be sentenced at a later date by Judge Lewis Kaplan.

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