Trader Jeremy Spence sentenced to 42 months in prison for fraud

American cryptocurrency trader Jeremy Spence, aka “Coin Signals”, has been sentenced to 42 months in prison for a $5 million fraud.

The Justice Department charged Jeremy Spence with defrauding 170 investors and embezzling $5 million. According to prosecutors, the trader claimed to have a “highly profitable trading strategy” but in fact his trades were almost always unprofitable. He was arrested at the beginning of 2021, in the fall he pleaded guilty, and now the court of the Southern District of New York defined he was sentenced to 42 months in prison. In addition, the defendant will have to pay $2.8 million to deceived investors.

Coin Signals continued its activities from November 2017 to April 2019. He created several cryptocurrency investment funds that turned out to be unprofitable. At the same time, to attract investors, he advertised them as extremely profitable. For example, in one online chat, he stated that his fund brought in 148% profit in just a month. In doing so, he created fake income statements.

“What struck me was the stupidity of the people you tricked into investing in your funds. But these machinations have real consequences, and they are serious,” District Judge Lewis Kaplan said during the hearing.

Jeremy Spence himself, during an appeal to the court, said that he was “killed” by his own behavior. He apologized to investors and admitted that he was not qualified enough to trade such a volume of funds. According to him, the trader “entered a world for which he was completely unprepared.”

Earlier it was reported that the US Department of Justice filed formal charges against the founder and CEO of Mining Capital Coin, Luis Capucci Jr., of creating an international fraudulent scheme for $62 million.