According to the court details, between 2017 and 2019, Spence solicited investors in various cryptocurrency investment pools he had created. The largest and most active of the funds were the Coin Signals Bitmex Fund, the Coin Signals Alternative Fund, and the Coin Signals Long Term Fund. Investors would transfer cryptocurrencies like Bitcoin and Ethereum to Spence for him to invest.
Spence managed to solicit over $5 million through false representations. He claimed that his crypto trading had been extremely profitable when, in fact, it had been consistently unprofitable. As a result of his claims, investors transferred additional funds to him. In over one month, He recorded net losses in the accounts in which he traded investor funds.
In order to continue raising money for his scheme, Spence generated fictitious account balances showing that investors were making money by investing with him. He used new investor funds to hide his trading losses. He used them to pay back other investors in a Ponzi-like manner. In total, Spence distributed $2 million worth of crypto to investors substantially from funds previously deposited by other investors.
Additionally, Spence was sentenced to three years of supervised released and restitution of $2.85 million.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.