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The founder of Coin Signals Funds has admitted to defrauding investors with a crypto scam scheme. According to the U.S. Department of Justice, his funds continuously lost money, and his swindle cost investors $5 million (DOJ).
Coin Signals Funds Led Crypto Scam Duped Investors Into Losing their Money
Jeremy Spence (aka Coin Signals) pled guilty in a fraudulent cryptocurrency investment scam, according to the U.S. Department of Justice (DOJ).
"After making fraudulent claims in connection with these funds, Spence recruited over $5 million from more than 170 individual investors for different cryptocurrency funds that he ran," according to the DOJ. Spence was arrested and charged in June.
U.S. Attorney Damian Williams provided the following details
"Jeremy Spence, a/k/a 'Coin Signals,' revealed today that he used false historical returns of up to 148 percent to lure investors into his cryptocurrency investment fraud." "In reality, Spence's investments continually lost money, and his scheme resulted in a $5 million loss for investors," the Justice Department said.
From November 2017 through April 2019, Spence sought investors for multiple bitcoin investment funds that he formed and managed. Coin Signals Bitmex Fund (CS Mex Fund), Coin Signals Alternative Fund (C.S. Alt Fund), and Coin Signals Long Term Fund were his three most significant and most active funds.
"Those interested in investing in a fund would send cryptocurrency such as bitcoin and ethereum to Spence, who would then invest it.” According to the DOJ, Spence "issued cryptocurrencies worth about $2 million to investors largely from monies already placed by other investors" to mask his trading losses.” Spence, 25, pleaded guilty to commodities fraud, a felony punishable by up to 10 years in jail.