A US court has sentenced a man who played a leading role in a $9.4 million cryptocurrency Ponzi scheme to five years in prison.
He was also ordered to forfeit more than $1 million and pay more than $170,000 in restitution.
Wolf Capital CEO found guilty
Travis Ford, 36, of Glenpool, Oklahoma, was the CEO of Wolf Capital Trading LLC, a cryptocurrency investment firm that raised nearly $10 million from about 28,000 investors.
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According to the U.S. Department of Justice, Ford solicited investments in 2023 through its website and various online promotions. He portrayed himself as an experienced trader who can generate daily profits in the range of 1% to 2% for investors.
During Mr. Ford’s court proceedings, prosecutors argued that Mr. Ford ultimately diverted and misappropriated these funds for personal use and to support his co-conspirators.
Ford pleaded guilty in January to one count of conspiracy to commit wire fraud. As part of his plea, he acknowledged that he knew he would not consistently receive the investment returns he advertised.
The incident marks yet another crypto-related Ponzi scheme to hit the headlines in recent months.
Cryptocurrency scams are on the rise around the world
In recent months, several major cryptocurrency Ponzi schemes have returned to the headlines around the world.
A similar incident occurred last month when Thai authorities arrested Chinese national Liang Aibing in Bangkok. He is accused of helping run the FINTOCH scheme, which allegedly stole more than $31 million from about 100 investors across Asia. Officials said the operation spanned multiple countries and relied on aggressive online marketing.
In August, a New York court handed down another significant ruling. A judge has ordered EminiFX founder Eddie Alexandre to repay $228 million after regulators determined his AI-themed platform was a massive fraud. The plan focused heavily on immigrant communities in the United States.
A third lawsuit surfaced a few weeks ago in Detroit, where city officials sued Florida-based RealT for selling tokenized shares of homes it never owned. The Company raised approximately $2.72 million from investors through these offerings.
While Ford’s conviction highlights a tougher stance from authorities, the latest wave of cases makes it clear that crypto fraud is spreading faster than it can be policed.
