American trader pleads guilty to $5 million cryptocurrency fraud

In the United States, 25-year-old trader Jeremy Spence pleaded guilty to cryptocurrency fraud. This is stated in a statement from the Department of Justice.

According to the agency, Spence raised more than $5 million from over 170 investors in his own hedge funds, promising returns of up to 148%. The largest were Signals Bitmex Fund, Coin Signals Alternative Fund and Signals Long Term Fund.

He concealed losses using funds from new clients, manipulated data about the Coin Signals accounts and provided false statements. In 2018, the law firm Silver Miller filed a suit against the trader for running a pyramid scheme.

In January 2021, federal prosecutors charged Spence. Separately, the US Commodity Futures Trading Commission sought restitution, a permanent ban on trading activity and penalties.

The trader faced up to 30 years in prison. However, after the guilty plea, the maximum sentence was reduced to 10 years. The Department of Justice did not specify a sentencing date.

In November 2021, the U.S. Securities and Exchange Commission (SEC) charged with Bitcoin fraud totaling $3.6 million a California resident.

Earlier, a group of American investor-protection organizations called on the SEC to strengthen its enforcement against crypto projects that violate the law.

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