Recently, the CFTC released a public notice concerning its case against Coin Signals’ CEO, Jeremy Spence. Spence repeatedly operated a crypto Ponzi scheme duping several users from December 2017 to April 2019.
A United States District Court for New York’s Southern District has ordered Coin Signals to remit restitution of $2.8 million to its cryptocurrency scam victims.
While announcing the end of the case against Coin Signals, the CFTC said:
“Today, the US CFTC announces that it had entered a consent order for the permanent injunction against Jeremy Spence by Honorable John Koeltl of the US District Court for New York’s Southern District.”
The case closure comes after Coin Signals defrauded several investors using a crypto Ponzi scheme. On January 26th, 2021, the CFTC filed a petition against Coin Signal’s CEO, Jeremy Spence.
The petition accused Spence of wire fraud, commodities fraud, and violating the CFTC and CEA’s regulations. According to the commodities regulator, Spence lured used investors from various social media platforms.
He convinced them using a fake trading record, a phony list of assets he manages, and promises of unusually high returns. On May 11th, 2022, the CEO admitted to committing commodities fraud and breaking the CFTC and CEA’s law.
Also read:The court sentenced him to 42 months of incarceration and three years of supervised parole. Reports reveal that Coin Signals earned over $5 million from about 175 victims.
CFTC Commissioner Sends Caution To Investors
In a recent statement, the CFTC Commissioner, Kristin N. Johnson, applauded the agency’s efforts in fighting cyber fraud. He noted that the agency needs to shift such efforts more to the crypto industry.
Additionally, the Commissioner noted that Spence’s prison sentence is good news for investors. Johnson added that the fraudster would no longer be able to defraud users using Ponzi schemes.
However, Johnson argued that the commission must be vigilant as other bad actors could rise in his stead. He advised crypto community members to check the commission’s investor advisory page for warning tips.
Furthermore, he warned that more potential crypto scams could arise. Then, he advised investors to carry out due diligence before investing.
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