US authorities have ordered Jeremy Spence (aka “Coin Signals”) to pay more than $2.8 million in restitution to victims of his cryptocurrency scam.
In May, the US Department of Justice (DOJ) sentenced the criminal to 42 months in prison for running a scheme that defrauded investors of more than $5 million.
‘An Illustration of the CFTC’s Best Efforts’
The Commodity Futures Trading Commission (CFTC) announced that the US District Court for the Southern District of New York entered a consent order for a “permanent injunction, restitution and equitable relief” against Jeremy Spence. The man, popular in the community as “Coin Signals”, ran a crypto-Ponzi scheme and drained more than $5 million worth of digital assets from fraudulent investors.
The authorities ordered him to compensate victims with $2,847,743 and imposed permanent registration and trading bans on the offender.
The CFTC recalled that Spence conducted his scam between December 2017 and April 2019. He lured around 175 people and drank huge amounts of bitcoin (BTC) and ether (ETH).
The investigation established that the American issued false performance statements, misrepresented its operations and lied about its entity’s liquidity in order to gain users’ trust. “Space eventually admitted to clients that it had engaged in lies and fraud,” the court said. “Coin Signals” pleaded guilty in November 2021 and receive a three and a half year prison sentence several months later.
The US regulator has promised to continue its fight against such fraudsters, to ensure maximum protection for consumers. CFTC Commissioner Kristin Johnson warned other lawbreakers may take Spence’s place after his prison term, meaning people should be prepared for future fraud:
“While Spence’s prison sentence will limit his ability to continue this scheme, other bad actors stand ready, willing and able to take his place and prey on victims’ hopes and fears. Accordingly, I strongly encourage members of the public to stay informed about the 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 conspiracy to commit wire fraud.
He encouraged his followers to send him bitcoin and promised that he would pay premium prices for those transactions. As typically happens in such cases, he stole millions of BTC from the scam.
“All the victims, in this case, were promised something that was too good to be true. The victims of the bitcoin advance fee scheme were guaranteed above current market value for their bitcoin,” said IRS-CI Special Agent-in-Charge Fattorusso.
Jay Manzini faces up to 20 years in federal prison for his crimes.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% discount on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register and enter code POTATO50 to receive up to $7,000 on your deposits.