{"id":77047,"date":"2021-01-27T01:37:47","date_gmt":"2021-01-27T06:37:47","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=77047"},"modified":"2021-01-27T01:37:47","modified_gmt":"2021-01-27T06:37:47","slug":"cftc-charges-new-york-man-in-multi-million-dollar-digital-asset-ponzi-scheme-involving-bitcoin-and-ether","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/01\/2021\/cftc-charges-new-york-man-in-multi-million-dollar-digital-asset-ponzi-scheme-involving-bitcoin-and-ether.html","title":{"rendered":"CFTC Charges New York Man in Multi-Million Dollar Digital Asset Ponzi Scheme Involving Bitcoin and Ether"},"content":{"rendered":"\n<p>(HedgeCo.Net) The Commodity Futures Trading Commission\u00a0has filed a federal civil enforcement action in the U.S. District Court for the Southern District of New York charging\u00a0<strong>Jeremy Spence<\/strong>\u00a0of New York, with fraud for operating a Ponzi scheme involving digital assets such as bitcoin and ether in which he fraudulently solicited more than $5 million of investments from individuals. The Division of Enforcement\u2019s Digital Assets Task Force was involved in this case.<\/p>\n\n\n\n<p>\u201cFraudulent schemes, like that alleged in this case, undermine the integrity and development of digital asset markets and cheat customers out of their hard-earned money,\u201d said Acting Director of Enforcement Vincent McGonagle. \u201cWe will continue to work to protect participants in our markets from fraudulent practices and hold fraudsters accountable.\u201d&nbsp;<\/p>\n\n\n\n<p>In its continuing litigation, the CFTC seeks restitution, disgorgement, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act and CFTC regulations, as charged.&nbsp;<\/p>\n\n\n\n<p><strong>Related Criminal Action<\/strong><\/p>\n\n\n\n<p>Earlier today Spence was charged by federal criminal complaint in the U.S. District Court for the Southern District of New York.&nbsp;The CFTC thanks and acknowledges the assistance of the U.S. Attorney\u2019s Office for the Southern District of New York and the Federal Bureau of Investigation.&nbsp;<\/p>\n\n\n\n<p><strong>Case Background<\/strong><\/p>\n\n\n\n<p>The complaint alleges that Spence, at times operating as \u201cCoin Signals,\u201d ran a Ponzi scheme in which he fraudulently solicited and obtained digital assets such as bitcoin and ether worth more than $5 million from customers. According to the complaint, Spence\u2019s trading resulted in significant trading losses and, as in all Ponzi schemes, his payouts of supposed profits to customers in actuality consisted of other customers\u2019 misappropriated funds. Spence allegedly engaged in numerous efforts to conceal his misconduct, including misrepresenting his trading profitability and the amount of assets he had under management, misappropriating customer funds, and issuing false performance statements. As stated in the complaint, Spence eventually admitted to his customers that he had engaged in \u201clies and deceit.\u201d&nbsp;&nbsp;&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(HedgeCo.Net) The Commodity Futures Trading Commission\u00a0has filed a federal civil enforcement action in the U.S. District Court for the Southern District of New York charging\u00a0Jeremy Spence\u00a0of New York, with fraud for operating a Ponzi scheme involving digital assets such as [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048,16047],"tags":[],"class_list":["post-77047","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news","category-insider-trading-2"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/77047","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=77047"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/77047\/revisions"}],"predecessor-version":[{"id":77048,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/77047\/revisions\/77048"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=77047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=77047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=77047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}