Former Rugby Player Sentenced for $900K Crypto Mining Ponzi Scheme
Shane Donovan Moore, a former rugby player, received a 2.5-year federal prison sentence for operating a $900,000 cryptocurrency mining Ponzi scheme. Through his company Quantum Donovan LLC from January 2021 to October 2022, Moore defrauded over 40 investors by promising 1% daily returns from crypto mining hardware investments.
How the Scheme Operated
The U.S. Department of Justice revealed Moore exploited cryptocurrency’s novelty to attract investors. Rather than acquiring mining equipment as promised, he diverted funds to support an extravagant lifestyle, purchasing luxury real estate and designer items. This followed the classic Ponzi pattern of using new investments to pay earlier participants.
Legal Repercussions
Acting U.S. Attorney Teal Luthy Miller highlighted both financial and emotional harm to victims. U.S. District Judge Tana Lin imposed the sentence in Seattle, concluding proceedings that began with March 2024 charges.
Growing Trend of Crypto Fraud
This case reflects a broader pattern of cryptocurrency-related scams. Recent examples include a Las Vegas man allegedly defrauding 400 investors of $24 million through a fake AI mining operation, and an 86-year-old former California attorney involved in a multi-million dollar crypto Ponzi scheme.
- Key Facts:
- Shane Donovan Moore received 30-month prison term
- Scheme defrauded 40+ investors of $900,000
- Funds used for personal luxuries instead of mining equipment
