Man Sentenced to 97 Months in Prison for Operating Crypto Ponzi Scheme
A man in the United States has been sentenced to 97 months in prison for his involvement in defrauding investors of over $40 million through a crypto Ponzi scheme.
The U.S. Department of Justice announced that 57-year-old Dwayne Golden was sentenced on June 27 by U.S. District Judge William F. Kuntz II in Brooklyn federal court. Golden had previously pleaded guilty to conspiracy to commit wire fraud and money laundering.
Operation of Fraudulent Digital Asset Firms
Golden, along with his co-defendants Gregory Aggesen, Marquis Egerton, and William White, operated three fraudulent digital asset companies—EmpowerCoin, ECoinPlus, and Jet-Coin. These companies promised guaranteed returns through overseas crypto trading but were actually Ponzi schemes, using new investor funds to pay off earlier investors or enrich themselves.
The scheme was active from April to August 2017, and investors suffered significant losses when the operators shut down the platforms and disappeared with the funds.
Obstruction of Investigations
Golden and his associates also attempted to obstruct federal investigations by destroying evidence and providing false information to authorities. Between 2017 and 2022, they conspired to hinder a Federal Trade Commission probe and a federal grand jury investigation into their fraudulent operations.
Golden was ordered to forfeit $2.46 million, with additional restitution to be determined later. Co-defendant William White received a 30-month prison sentence, while Aggesen and Egerton are awaiting sentencing.
Continued Enforcement Actions by the DOJ
Golden’s sentencing is part of a series of recent crypto-related enforcement actions by the DOJ. In June, the agency seized over $225 million in cryptocurrency linked to pig butchering scams. Additionally, they filed a forfeiture action to seize over $7.7 million in crypto tied to North Korean operatives and charged a Russian national for operating a $500 million money laundering scheme.
The FBI and DOJ are dedicated to dismantling fraudulent operations and recovering stolen assets for victims through international cooperation and advanced blockchain tracing techniques.
As financial crimes involving cryptocurrency continue to rise, U.S. officials are committed to aggressive enforcement to protect investors and hold perpetrators accountable.