US authorities have ordered Jeremy Spence (aka “Coin Signals”) to pay over $2.8 million in restitution to victims of his cryptocurrency fraud.
The US Department of Justice (DOJ) sentenced the criminal to 42 months in prison in May for leading a scheme that defrauded investors of more than $5 million.
“An illustration of the CFTC’s best efforts”
The Commodity Futures Trading Commission (CFTC) announcement that the U.S. District Court for the Southern District of New York issued a consent order for “permanent injunction, restitution, and equitable relief” against Jeremy Spence. The man, popular in the community as “Coin Signals”, operated a crypto Ponzi scheme and drained over $5 million in digital assets from scammed investors.
The authorities ordered him to reimburse the victims $2,847,743 and imposed permanent registration and trading bans on the perpetrator.
The CFTC recalled that Spence ran his scam between December 2017 and April 2019. He lured around 175 people and siphoned off huge amounts of bitcoin (BTC) and ether (ETH).
The investigation determined that the American had issued false performance claims, misrepresented its operations and lied about the liquidity of its entity to gain the trust of users. “Space eventually admitted to customers that it had engaged in lies and deception,” the court heard. “Coin Signals” pleaded guilty in November 2021 and received a prison sentence of three and a half years a few months later.
The American regulator is committed to continuing its fight against these fraudsters, ensuring maximum protection for consumers. CFTC Commissioner Kristin Johnson warned other offenders could take Spence’s place after his imprisonment, which means people should be prepared for future fraud:
“While Spence’s prison sentence will limit his ability to continue this scheme, other bad actors are ready, willing and able to step into his shoes and prey on the hopes and fears of victims. Accordingly, I strongly encourage members of the public to stay informed of potential scams and abuses in the digital asset markets by visiting our Investor Advice page.
Jail time for Jay Manzini too
Instagram influencer Jebara Igbara, better known as “Jay Manzini”, pleaded guilty last month to money laundering, wire fraud and wire fraud conspiracy.
He urged his followers to send him bitcoins, promising that he would pay high prices for these transactions. As usually happens in such cases, he stole millions of BTC from the crooks.
“All of the victims, in this case, were promised something that was too good to be true. Victims of bitcoin’s advance fee scheme were guaranteed above the current market value of their bitcoin,” the official said. special agent in charge of the IRS-CI, Fattorusso.
Jay Manzini faces up to 20 years in federal prison for his crimes.
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