- The CFTC has completed its inquiry into “Coin Signals,” a cryptocurrency trader who conceded to defrauding the commodities market earlier this year.
- The court ordered Spence to pay the $2,847,743 in reparation to the scheme’s victims.
The US District Court for the Southern District of New York has registered a settlement agreement for a court injunction, restitution, and equitable relief against Jeremy Spence of Bristol, Rhode Island, who operated as Coin Signals, according to the Commodity Futures Trading Commission (CFTC).
The consent decree settles a case brought by the CFTC against Spence on January 26, 2021, in which it was claimed that he ran a virtual currency Pyramid scheme in which he deceptively encouraged people to invest in digital assets like bitcoin and ether.
A number of bankruptcies paint a sombre picture of some of the most appalling corporate governance and risk management mistakes in the modern era of financial markets.
The court’s consent order stated that “Spence’s solicitations-which, as explained below, were rife with fraud, lies, and deceit-were successful.” “During the Relevant Period, Spence obtained from individual customers comprising approximately 175 user accounts virtual currencies such as bitcoin and ether valued at more than $5 million at the time.”
In May of this year, Jeremy Spence was already given a 42-month prison term.
Spence must make the $2,847,743 in restitution to the scheme’s victims according to the court’s order.
Additionally, as accused, the order irrevocably bars Spence from violating the Commodity Exchange Act (CEA) and CFTC rules again and enforces enrollment and trading bans.
The US Attorney’s Office for the Southern District of New York filed a concurrent criminal complaint insinuating Spence decided to commit one count of commodities fraud in violation of CEA and CFTC regulatory requirements as well as one add up of wire fraud.
In a statement issued in response to the order, CFTC Commissioner Kristin Johnson applauded the agency’s investigation and prosecution but argued that it required more regulatory power. She stated that “presently, our scope into digital trading markets is limited” due to a supervisory disparity.
Recently, the Commodity and Futures Trading Commission has taken a very proactive approach to combating ponzi and wire fraud. Rathnakishore Giri of Ohio, who is accused of operating a $12 million Bitcoin Ponzi scheme, was the subject of a civil enforcement action brought by CTFC, it was revealed in the middle of August.
According to a press release from the CFTC, Giri and his Ohio-based businesses NBD Eidetic Capital, LLC and SR Private Equity, LL used deceptive methods to solicit more than $12 million and at least 10 bitcoins from more than 150 customers.