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CFTC files charges New York man in a multi-million dollar Bitcoin and Ether Ponzi Scheme



The Commodity Futures Trading Commission (CFTC) filed a federal civil enforcement charging Jeremy Spence with fraud for operating a Ponzi scheme involving digital assets such as bitcoin and ether.  Spence fraudulently solicited over $5 million of investments from individuals. The case also involved the Division of Enforcement’s Digital Assets Task Force.

The CFTC alleges that while operating “Coin Signals,” Spence 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. The official complaint against Spence also claims his trading resulted in significant trading losses his payouts of supposed profits to customers in actuality consisted of other customers’ misappropriated funds.

CFTC

He allegedly engaged in various efforts to conceal his misconduct – he misrepresenting his trading profitability and the amount of assets he had under management, misappropriated customer funds, and issuing false performance statements. The complaint stated that Spence eventually admitted to his customers that he had engaged in “lies and deceit.”

Acting Director of Enforcement Vincent McGonagle commented:

Fraudulent 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. We will continue to work to protect participants in our markets from fraudulent practices and hold fraudsters accountable.

The US watchdog seeks restitution, disgorgement, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations.

Spence was also charge in a parallel federal criminal case.


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CFTC files charges New York man in a multi-million dollar Bitcoin and Ether Ponzi Scheme

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