Kryptotrader Jeremy Spence gets 42 months in prison for deception

A 25-year-old crypto-dealer from Rhode Island, Jeremy Spence, known as "Coin Signals" on social media channels, was sentenced to 42 months in prison. He was accused of cheating 170 people by more than $ 5.37 million

fake investment funds

The Ministry of Justice (DOJ) published a press release in which it was said that Spence had operated several crypto investment funds between November 2017 and April 2019. These include the Coin Signals Bitmex Fund, the Coin Signals Alternative Fund and the Coin Signals Alternative Co -Signals Long Term Fund.

Investors interested in the fund would transfer cryptocurrencies such as Bitcoin and Ethereum to Spence, which in turn made false return promises. Judge Lewis Kaplan from United States District Court for the Southern District of New York said:

"Spence asked false statements more than $ 5 million, including that Spences crypto trade was extremely profitable, although his trade was actually consistently unprofitable."

complaints of 148 % per month

On January 28, 2018, Spence posted in an online chat group that his commercial skills generated yields of over 148 percent in just one month. This encouraged investors to transfer additional funds to Spence. The doj said:

In fact, Spences trade led to net loss on the accounts on which he acted with investor money in the same period of about a month. Spence used new means to cover up losses and make payments to old investors. This enabled him to continue to deceive and collect more money. The doj added:

"To hide his trade losses, Spence has used new investor money to repay other investors in a ponzi-like way."

a reimbursement calculation of

Spence used cryptocurrency of new investors worth around $ 2 million per court application to distribute them to old investors. Judge Kaplan told the accused:

"What I noticed was the stupidity of the people they helped to invest with them. These gadgets have real effects and they are serious."

Spence, which had guilty last November, is also released under supervision for three years and must pay the target persons a refund of $ 2,847,743