The Department of Justice, earlier today, announced via a press release that Dwayne Golden, a key figure behind a massive crypto Ponzi scheme that defrauded investors of $40 million, has been sentenced to 97 months in prison. The case, which involves sham crypto firms EmpowerCoin, ECoinPlus, and Jet-Coin, marks another chapter in the ongoing battle against digital currency scams that exploit investor trust.
$40M Ponzi Scheme Attracts Prison Sentence
In March 2022, federal authorities initiated charges against Golden and his associates, alleging involvement in fraud, money laundering, and various financial crimes. The DOJ conducted a thorough investigation, utilizing blockchain analysis and financial forensics to uncover the sophisticated network of transactions used to hide illicit funds. Golden subsequently pleaded guilty, a decision that likely contributed to the court’s determination to impose an eight-year sentence.
Alongside Golden, co-conspirator Jatin White received a 30-month sentence, while accomplices Danille Aggesen and Lawrence Egerton await sentencing. The case highlights the loopholes in the unregulated cryptocurrency market, with authorities noting a shift toward more targeted scams, such as “pig butchering,” in recent years.
The Never-Ending Cases of Crypto Crimes
Dwayne Golden and his co-conspirators orchestrated a sophisticated Ponzi scheme through EmpowerCoin, ECoinPlus, and Jet-Coin between 2016 and 2018, promising investors guaranteed returns on crypto investments. The firms lured victims with fabricated overseas operations and assurances of high profits, raising over $40 million.
Instead of investing the funds, Golden and his associates used new investor money to pay earlier backers—a hallmark of Ponzi schemes—while siphoning off substantial sums for personal gain. The scheme collapsed when investor funds dried up, leaving thousands defrauded. The DOJ reported that Golden’s actions not only caused financial ruin but also obstructed federal investigations, increasing the legal consequences.
This case echoes other high-profile crypto frauds, such as the November 2022 $8 billion scheme, led by Sam Bankman-Fried, who faces a potential 25-year sentence, now shortened by 4 years, and the $5.7 million in crypto theft orchestrated by former Bybit payroll chief, Ho Kai XinNotably, who has been sentenced to nine years and 11 months in prison, in addition to serving a six weeks before the official long-term prison sentence.
