{"id":13538,"date":"2025-06-29T05:25:31","date_gmt":"2025-06-29T03:25:31","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=13538"},"modified":"2025-06-29T05:25:31","modified_gmt":"2025-06-29T03:25:31","slug":"crypto-con-artist-sentenced-to-eight-years-for-40-million-empowercoin-and-ecoinplus-schemes","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/06\/29\/crypto-con-artist-sentenced-to-eight-years-for-40-million-empowercoin-and-ecoinplus-schemes\/","title":{"rendered":"Crypto Con Artist Sentenced to Eight Years for $40 Million EmpowerCoin and ECoinPlus Schemes"},"content":{"rendered":"

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A individual at the heart of a significant cryptocurrency Ponzi scheme will serve almost eight years in prison after a federal judge imposed a 97-month sentence in Brooklyn last Friday.<\/p>\n

Dwayne Golden, 57, was found guilty of wire fraud and money laundering for his involvement in executing scams via three digital asset companies, EmpowerCoin, ECoinPlus, and Jet-Coin, which deceived investors out of more than $40 million, the Department of Justice (DOJ) declared<\/a>.<\/p>\n

Federal attorneys indicated that Golden and his associates promised assured returns from cryptocurrency trading that never occurred. Instead, funds were diverted to repay earlier investors or enrich the conspirators, classic indicators of a Ponzi scheme<\/a>.<\/p>\n

The firms collapsed shortly following the collection of investor deposits, leaving victims with substantial losses.<\/p>\n

An excerpt from the DOJ filing. Source: DOJ<\/em><\/figcaption><\/figure>\n

Related: <\/strong><\/em>Citibank accused of overlooking signs of $20M crypto romance scam<\/strong><\/em><\/a><\/p>\n

Counterfeit crypto trading firms<\/h2>\n

The operation ran from April to August 2017. Golden, along with Gregory Aggesen and Marquis Egerton (also recognized as Mardy Eger) falsely advertised their companies as global crypto traders.<\/p>\n

After their enterprises failed, Golden and his co-defendants attempted to hinder both a Federal Trade Commission investigation and a federal grand jury inquiry, which included destroying evidence and supplying misleading information.<\/p>\n

\u201cGolden and his co-defendants provided no genuine services and none of the companies engaged in any real trading in cryptocurrency as they asserted,\u201d United States Attorney Joseph Nocella remarked, characterizing the scheme as an exploitation of investor enthusiasm<\/a> for emerging technology.<\/p>\n

Golden was also instructed to forfeit around $2.46 million. Co-defendant William White received a 30-month sentence, while Aggesen and Egerton are currently awaiting sentencing.<\/p>\n

FBI Assistant Director Christopher Raia labeled the conspiracy \u201can intricate scheme founded in deceit and empty promises to deceive investors.\u201d He emphasized that Golden\u2019s actions displayed \u201can absolute disregard for integrity\u201d and commended the sentence as a caution to other potential scammers.<\/p>\n

The DOJ urged investors who incurred losses from the scheme to file restitution claims via the FBI\u2019s specialized portal.<\/p>\n

Related: <\/strong><\/em>Crypto ATM sting reveals elderly widow who lost $282K in scam<\/strong><\/em><\/a><\/p>\n

Five confess guilt in $37M crypto scam<\/h2>\n

In a similar case, earlier this month, five individuals admitted guilt to orchestrating a $36.9 million<\/a> crypto scam that defrauded Americans and funneled cash to a crypto scam hub in Cambodia.<\/p>\n

The defendants engaged victims via social media, messaging applications, and dating sites, enticing them with fraudulent promises of lucrative crypto investments.<\/p>\n

This year, over $2.1 billion has been misappropriated<\/a> in crypto-related incidents, with the majority of losses connected to wallet breaches and key mismanagement, CertiK co-founder Ronghui Gu noted.<\/p>\n

Magazine: <\/strong><\/em>GENIUS Act reopens opportunities for a Meta stablecoin, but will it succeed?<\/strong><\/em><\/a><\/p>\n