Colorado resident Robert Wesley Robb entered a guilty plea for orchestrating a cryptocurrency fraud that duped investors of approximately $2.2 million.
Robb, aged 46, is now potentially facing up to 20 years of imprisonment, pending the outcome of his sentencing scheduled for October 2nd.
Exploitation of social media for fraud
Using social media to promote his fraudulent scheme, Robert Wesley Robb attracted investors with the promise of high returns through a supposed Maximum Extractable Value (MEV) crypto trading bot. He appealed to potential investors to invest amounts ranging from as little as $100 to as much as $200,000, which he claimed were just “sitting around.” Encouraging them to direct message him, Robb managed to convince them of the lucrative nature of his project.
However, instead of deploying these funds to develop the promised crypto trading bot, Robb transferred the money to his cryptocurrency exchange account. According to the United States Attorney’s Office’s court documents, he siphoned the funds into his bank accounts.
Victims and misappropriation of funds
The investigation into Robb’s activities highlighted that over ten investors fell victim to his deceptive promises. Among the victims was an individual from Brambleton, Virginia, who initially transferred $100,000 to Robb’s Ethereum address. After being misled about the potential dilution of his investment due to another high-stake investor, the Virginia resident sent an additional $50,000.
Robert Wesley Robb, 46, of Colorado, pled guilty today to wire fraud relating to his scheme to fleece investors through a series of misrepresentations and high-pressure tactics. #FBI #USAO #justicehttps://t.co/ELHd54o2Xj
— U.S. Attorney EDVA (@EDVAnews) June 21, 2024
As the situation unfolded, the promised payouts remained non-existent, and when pressed for refunds, Robb misled the investors by claiming that the trading bot was merely “warming up.” Court documents further disclosed how Robb indulged in lavish personal expenditures with the stolen funds. His extravagant purchases included airline tickets, luxury vehicles, and expensive holidays, including a $50,000 vacation in the Bahamas for his girlfriend and her family. He also leased a luxury suite at Denver Broncos’ Mile High Stadium for over $200,000 and acquired a 2023 Jeep Wagoneer costing over $100,000.
Upcoming sentencing and prosecution
With the guilty plea submitted, Robert Wesley Robb is slated for sentencing on October 2nd. The case is being prosecuted by Assistant U.S. Attorneys Zoe Bedell and Katherine E. Rumbaugh. While the maximum sentence for such federal crimes could be 20 years, sentencing guidelines typically result in lighter penalties.
This case is a stark reminder of the risks associated with unverified cryptocurrency investments, particularly those promoted on social media platforms. Investors are urged to exercise due diligence and verify the credibility of investment opportunities to avoid falling prey to similar fraudulent schemes.
The post Colorado Man Admits to $2.2 Million Crypto Fraud, Faces 20 Years in Prison first appeared on Coinfea.