In a shocking recent event in the coin market, Jeremy Spence, also known by the nickname "Coin Signals," has officially pleaded guilty to defrauding investors of over 5 million USD in cryptocurrency. The trial took place at the Southern District Court of New York, presided over by Judge Lewis A. Kaplan, with information released by the Federal Bureau of Investigation (FBI).
From 2017 to 2019, Spence managed several coin investment funds including Coin Signals Bitmex fund, Coin Signals Alternative altcoin fund, and Coin Signals Long Term fund. Spence attracted more than 170 investors with promises of significant returns of up to 148% from coin trading. However, in reality, Spence's trades consistently incurred losses, leaving investors with heavy damages.
To conceal these losses and continue attracting finances from new investors, Spence created fake account balances, leading investors to believe they were earning profits. Spence distributed coins worth approximately 2 million USD to investors, primarily from the capital of new investors in a Ponzi scheme-like manner.
Jeremy Spence has pleaded guilty to fraud, with a sentence that could reach up to 10 years in prison, according to U.S. law. The final sentencing will be decided by Judge Kaplan in the near future. This case serves as a warning to investors amidst a growing cryptocurrency market that also poses many fraud risks.
This incident has made investors cautious and in need of choosing reputable crypto investment funds, especially in the coin and altcoin market which is experiencing significant fluctuations. When pursuing large profits, it is crucial to ensure transparency and credibility from fund managers.