US Man Behind $9.4 Million Crypto Ponzi Scheme Learns His Fate in Court
A US court docket sentenced a person to 5 years in jail for his main position in a $9.4 million cryptocurrency Ponzi scheme.
He was additionally ordered to pay over $1 million in forfeiture and over $170,000 in restitution.
Wolf Capital CEO Found Guilty
Travis Ford, a 36-year-old resident of Glenpool, Oklahoma, was the CEO of Wolf Capital Trading LLC, a cryptocurrency funding agency that raised practically $10 million from round 2,8000 traders.
According to the US Department of Justice, Ford spent 2023 soliciting investments via his web site and numerous on-line promotions. He portrayed himself as an skilled dealer able to generating daily returns starting from 1% to 2% for traders.
During Ford’s court docket course of, prosecutors argued that he in the end diverted and misappropriated those funds for private use and to assist his co-conspirators.
In January, Ford admitted guilt to a single cost of conspiracy to commit wire fraud. As a part of his plea, he acknowledged figuring out that the funding returns he marketed couldn’t be persistently delivered.
This case marks yet one more crypto-related Ponzi scheme to floor in the headlines in current months.
Crypto Fraud Surges Worldwide
In current months, a number of main crypto Ponzi schemes have reappeared in headlines worldwide.
An analogous case got here final month, when Thai authorities arrested Chinese nationwide Liang Ai-Bing in Bangkok. He is accused of serving to run the FINTOCH scheme, which allegedly stole more than $31 million from practically 100 traders throughout Asia. Officials say the operation spanned a number of nations and relied on aggressive on-line advertising.
In August, a New York court docket issued one other main ruling. Judges ordered EminiFX founder Eddy Alexandre to repay $228 million after regulators decided his AI-themed platform was a large-scale fraud. The scheme closely focused immigrant communities in the United States.
A 3rd case surfaced weeks earlier in Detroit, when metropolis officers sued Florida-based RealT for selling tokenized shares of properties it by no means owned. The firm raised roughly $2.72 million from traders via these choices.
While Ford’s conviction highlights a harder stance from authorities, the wave of current circumstances makes clear that crypto fraud is spreading sooner than enforcement can sustain.
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