Crypto Scammer Coin Signals Ordered to Pay $2.8 Million to Victims

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The Amer­i­can author­i­ties ordered Jere­my Spence (a.k.a. “Coin Sig­nals”) to pay over $2.8 mil­lion in resti­tu­tion to vic­tims of his cryp­tocur­ren­cy fraud. 

The US Depart­ment of Jus­tice (DOJ) sen­tenced the crim­i­nal to 42 months in prison in May for run­ning a scheme that defraud­ed investors with 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,” oper­at­ed a cryp­to Ponzi scheme and drained over $5 mil­lion worth of dig­i­tal assets from conned investors.

The author­i­ties ordered him to reim­burse vic­tims with $2,847,743 and enforced per­ma­nent reg­is­tra­tion and trad­ing bans on the wrongdoer.

The CFTC remind­ed that Spence ran his scam between Decem­ber 2017 and April 2019. He lured approx­i­mate­ly 175 peo­ple and siphoned huge amounts of bit­coin (BTC) and ether (ETH). 

The inves­ti­ga­tion deter­mined that the Amer­i­can issued false per­for­mance state­ments, mis­rep­re­sent­ed his oper­a­tions, and lied about his entity’s liq­uid­i­ty to gain the users’ trust. “Space even­tu­al­ly admit­ted to cus­tomers that he had engaged in lies and deceit,” the court stat­ed. “Coin Sig­nals” plead­ed guilty in Novem­ber 2021 and received a prison sen­tence of three and a half years sev­er­al months later.

The US reg­u­la­tor vowed to con­tin­ue its fight against such fraud­sters, ensur­ing max­i­mum pro­tec­tion for con­sumers. CFTC Com­mis­sion­er Kristin John­son warned oth­er law­break­ers could take Spence’s place after his impris­on­ment, mean­ing that peo­ple should be pre­pared for future fraud:

“While Spence’s prison term 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 assets mar­kets by vis­it­ing our investor advi­so­ry page.”

Jail Time for Jay Manzini, too

The Insta­gram influ­encer Jebara Igbara, bet­ter known as “Jay Manzi­ni,” plead­ed guilty last month to mon­ey laun­der­ing, wire fraud, and wire fraud conspiracy. 

He urged his fol­low­ers to send him bit­coin, promis­ing he will pay pre­mi­um prices for those trans­ac­tions. As typ­i­cal­ly hap­pens in such cas­es, he stole mil­lions worth of BTC from the conned people.

“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 the cur­rent mar­ket val­ue for their bit­coin,” IRS-CI Spe­cial Agent-in-Charge Fat­torus­so said.

Jay Manzi­ni faces up to 20 years in fed­er­al prison for his crimes.

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