Crypto trader Jeremy Spence, also known as “Coin Signals,” is currently facing fraud allegations. Federal prosecutors have charged Coin Signals for defrauding investors of investment worth $5 million, in a Ponzi-like scheme. Coin Signal is facing commodities fraud and wire fraud charges. If Spence is found guilty of all charges, he may face a prison term of up to 30 years.
On the 26th of January, the US Department of Justice (DOJ) noted that Coin Signals duped investors from November 2017 till April 2019. The DOJ stated:
“As alleged, SPENCE took cryptocurrency worth over $5 million from more than 170 individual investors after making false representations in connection with these cryptocurrency funds.”
Manhattan US Attorney Audrey Strauss also commented on Spence’s case. Strauss said the accused allegedly enticed investors with up to 148% returns on their investments. Eventually, investors lost their investments and the promised returns.
The attorney further said that the new investors should learn from the fraud case by getting familiar with the crypto space before venturing into any investment. Strauss further warned investors against “investment scams promising huge returns for small investments that are indeed too good to be true.”
FBI Assistant Director-in-Charge William Sweeny also said that Spenser’s investment return was too high and needed to use funds from new investors to pay others. The executive also warned investors to be careful on scams and report any suspicious activity to the appropriate authority.
Image Credits: Pixabay
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