The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.
The consent order resolves a CFTC action filed against Jeremy Spence on January 26, 2021 alleging that he operated a virtual currency Ponzi scheme in which he fraudulently solicited individuals to invest in digital assets such as bitcoin and ether.
Jeremy Spence aka Coin Signals was found to obtain more than $5 million of digital assets such as bitcoin and ether from customers in a Ponzi scam that covered his significant trading losses and whose payouts of supposed profits to customers were actually misappropriated funds from other customers.
He was found to misrepresent his trading profitability and the amount of assets he had under management, as he took customer funds and issued false performance statements. Spence eventually admitted to customers that he had engaged in “lies and deceit.”
Jeremy Spence sentenced to 42 months of incarceration
A parallel criminal action had also been filed in New York, charging him with one count of commodities fraud in violation of the CEA and CFTC regulations and one count of wire fraud.
Spence pled guilty to commodities fraud under the CEA and CFTC regulations and was sentenced on May 11, 2022 to 42 months of incarceration and three years of supervised release. He was also ordered to pay restitution of $2,847,743.
CFTC Commissioner Kristin…
