A $5 million fraud puts the trader behind bars for 3.5 years.
Crypto Crime is a deal any investor would waive.
Crypto crimes have recently increased due to the lack of a strict framework consisting of rules and regulations that would keep the exchange, the trader, and everyone involved in the crypto market in check. As the crypto market grew to generate money for people, the crypto crime rate rose to a whole new level. Many criminals have hacked into investors’ accounts and stolen cryptocurrencies. There were incidents, the criminal stole people their cryptocurrencies by threatening with a gun. All of these cases have certainly damaged the reputation of the cryptocurrency market. Two regulatory bodies, the SEC and the DOJ, are surely working hard to reduce cryptocurrency crimes.
Let’s look at one of the cases where the regulatory body DOJ caught a merchant for fraudulent activities.
Jeremy Spence, a 25-year-old Rhode Island Crypto Currency trader known as “Coins Signal”, tricked about 170 people out of about $5 million. According to an official, he solicited funds from investors through several crypto investment pools, which he ran from November 2017 to April 2019. The three largest crypto funds he traded in were – Coin Signals Bitmex Fund, The Coin Signals Alternative Fund and The Coin. Signals Long Term Fund. The defendant is said to have falsely enticed investors to invest more by falsely reporting the profits of the investment they had made and did not disclose the actual returns to investors. But luckily, the DOJ learned of Spence’s fraudulent activities and arrested him before he could deceive other investors.
Spence was arrested in January 2021 by the FBI. But, he did his best to get out of the dirt. Eventually, he accepted his mistake in November 2021. In addition to his 42-month prison sentence, Spence will have three years of probation and will pay restitution of more than $2 million after his release.
After reading the report, it is quite evident that even though crime rates are rising rapidly in the crypto market, regulators such as the SEC and DOJ are doing their best to limit unfortunate events and regain investor confidence. In hindsight, the SEC and DOJ might start putting different technical departments into handling different crypto-related crimes to reduce the time it takes to bring justice.