Crypto Fraudster Sentenced to 8 Years for $40 Million Ponzi Scheme
A U.S. court has sentenced Dwayne Golden to 97 months in prison for his part in a massive crypto fraud. Golden, 57, pleaded guilty to wire fraud and money laundering.The scheme involved three fake crypto firms: EmpowerCoin, ECoinPlus, and Jet-Coin.
These companies promised high returns on overseas crypto trades. Though, they where Ponzi schemes. They used new investors’ money to pay old investors or line their pockets. The scam ran from April to August 2017, leaving many victims with huge losses.
Golden and his partners ran the scam. They misled investors, claiming guaranteed profits. Rather,they stole over $40 million.The U.S.Department of Justice revealed the details. Golden and his team shut down the platforms and vanished with the cash. Victims lost millions.
Golden and his co-conspirators also tried to cover their tracks. They destroyed evidence and gave false info to investigators. Golden must now give back $2.46 million. The court will decide on further compensation later. Co-defendant William White got 30 months in prison. Aggesen and Egerton await sentencing.
The DOJ is stepping up its fight against crypto fraud. They recently seized $225 million linked to scams. They also targeted North Korean crypto theft and a Russian money laundering scheme.
Officials say they will keep cracking down on crypto crimes. They use blockchain tech to trace stolen funds and work with other countries. Victims can file claims with the FBI for compensation.
