Crypto Fraudster Sentenced to 8 Years for $40M Ponzi Scheme
Dwayne Golden, a central figure in a major cryptocurrency Ponzi scheme, received a nearly eight-year prison sentence. The scheme defrauded investors of over $40 million through companies named EmpowerCoin, ECoinPlus, and Jet-Coin. From April to August 2017, Golden and associates falsely promised guaranteed returns from crypto trading.
How the Scam Operated
The fraudsters collected funds by posing as legitimate cryptocurrency traders. Instead of trading, they used new investments to pay earlier participants—a classic Ponzi scheme structure. All three companies shut down soon after taking deposits, leaving investors with significant losses.
Legal Repercussions
Convicted of wire fraud and money laundering, Golden must forfeit $2.46 million. His co-defendants face sentencing. The Department of Justice directs affected investors to file claims through an FBI restitution portal.
Broader Implications
This case highlights serious consequences for cryptocurrency fraud. Law enforcement officials stress that such schemes exploit public interest in emerging technologies while violating trust and financial laws.
