US law enforcement has accused Rhode Island-based cryptocurrency trader Jeremy Spence of defrauding investors for $ 5 million.
Jeremy Spence promoted his services under the pseudonym “Coin Signals” from November 2017 to April 2019. He took funds from investors, ostensibly for trading in the cryptocurrency market. According to law enforcement agencies, during the specified period, Spence defrauded more than 170 investors for a total of $ 5 million. Now the trader is accused of fraud with goods and currency fraud.
“Spence urged investors to invest in the pools of investments in cryptocurrencies he created. The largest and most active of these funds were Coin Signals Bitmex Fund, Coin Signals Alternative Fund and Coin Signals Long Term Fund. He inflated the success of his funds to attract people. Since his trading was not profitable, especially when compared to his statements, he used funds from new investors to pay off others – a typical pyramid scheme, ”said FBI Deputy Director William Sweeney.
If the court finds Spence guilty of the charges, then the trader faces up to 30 years in prison. The US Commodity Futures Trading Commission (CFTC) also imposed fines and a life ban on Spence.
Earlier, the US Securities and Exchange Commission (SEC) published a list of 28 unregistered cryptocurrency firms that provide investors with false information.
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