A pre-semi-crescent rugby player from Seattle has been sentenced to two-and-a-half years in the federal jail, who has been found guilty of organizing a fraudulent cryptocurrency mining scheme.
37 -year -old Shane Donovan Moore was convicted of wire fraud involving more than 40 investors in several American states, contributing more than $ 900,000 under false excuse.
Prosecutor expansion plan and financial misuse
According to a press release by the US Department of Justice, Moore operated a company called Quantum Donovan LLC between January 2021 and October 2022. He allegedly told investors that their funds would be used to buy cryptocurrency mining equipment and were promised 1% daily returns.
However, no such mining equipment was ever purchased. Instead, Moore used funds invested for personal expenses and to repay early participants in a classic Ponzi plan structure.
During the hearing of the sentence, American District Judge Tana Lynn emphasized psychological and emotional toll on the victims of Moore. Many of the investors were Moore who met Moore Washington, Oregon, Utah, Connecticut and New Jersey through his rugby connections.
Assistant American Attorney Brian Vine mentioned in the court filing that Moore used the investor fund to finance individual living expenses, including luxury travel, clothes, electronics and apartment deposits.
The fraud operation worked using money from new investors, who create a working mining business confusion, to send returns to the earlier people. To strengthen the reliability of the plan, Moore sometimes sent some investors to cryptocurrency.
This, prosecutors say, to convince them that the mining operation was real. However, no fund was ever allocated for mining hardware or infrastructure.
The Department of Justice highlighted that Moore’s actions caused a lot of financial loss. While the total was collected over $ 900,000, the victims were abandoned with a combined loss of over $ 387,000.
The discrepancy stems partially back to maintain deception over a 21 -month period before the use of Moore’s new investments.
DOJ and FBI take precautions amidst risks of crypto fraud
The Federal Bureau of Investigation examined Moore’s activities, prosecution by assistant American lawyers Brian Win and KC Konjatti.
Acting American Attorney Chaiti Luthi Miller said Moore capitalized on the emerging popularity of cryptocurrency to perform a familiar form of fraud. “He used the newness of cryptocurrency for an old fraud-one Ponji scheme,” Miller said.
Moore’s sentence reflects a wide push to create a rift on the cryptocurrency investment schemes fraudulently by US authorities. According to the 2023 Internet crime report of the FBI, crypto-related fraud has increased in recent years, especially scams promising high yield returns through mining or stacking.
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