U.S. federal prosecutors charged the 24-year-old trader Jeremy Spence with running a cryptocurrency pyramid scheme, Coin Signals. The scheme’s victims numbered 170 investors, according to the заявлении by the DOJ.
From 2017 to 2019, Spence raised $5 million for his hedge funds. The largest were Signals Bitmex Fund, Coin Signals Alternative Fund and Signals Long Term Fund.
Authorities allege that the trader concealed losses from failed investments with funds from new clients. He also manipulated data on Coin Signals accounts and provided false information.
In 2018, the law firm Silver Miller filed suit against Spence, accusing him of running a pyramid scheme.
For fraud, Spence faces up to 30 years in prison. Separately, the U.S. Commodity Futures Trading Commission потребовала restitution, a permanent ban on trading and penalties.
u.s. v. Jeremy Spence 21 Mag 880 Complaint by ForkLog on Scribd
In January 2021, a U.S. court sentenced him to 10 years in prison for organizing a fraudulent scheme by Gemcoin founder Steve Chen.
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