A former semi-professional rugby player from Seattle, Shane Donovan Moore, has been sentenced to 30 months in federal prison for running a cryptocurrency Ponzi scheme that defrauded over 40 investors across the U.S. Moore, 37, pleaded guilty to wire fraud in U.S. District Court in Seattle and was sentenced by Judge Tana Lin on Wednesday.
Moore operated a company called Quantum Donovan LLC, which he claimed was a legitimate cryptocurrency mining operation. However, prosecutors found that the company was never real and Moore used investor funds for personal expenses instead of purchasing mining equipment.
Between January 2021 and October 2022, Moore pitched his fraudulent venture to investors in Washington, Oregon, Utah, Connecticut, and New Jersey. Many of these investors were friends, former teammates, and acquaintances from his rugby career. Moore promised investors a daily return of 1% from the profits of the supposed mining operation.
Instead of investing in cryptocurrency mining equipment, Moore used the funds for personal expenses such as travel, luxury goods, electronics, clothing, and a deposit on a high-end apartment. He also bought cryptocurrency to make small payouts to early investors, creating the illusion that the operation was successful and encouraging more people to invest.
Prosecutors revealed that while Moore raised over $900,000 from investors, the actual loss amounted to just over $387,000 after some initial payouts. During the sentencing hearing, Judge Lin acknowledged Moore’s difficult personal history and trauma but emphasized that his actions caused real harm to his victims.
The judge highlighted the financial losses as well as the emotional and psychological damage inflicted on Moore’s victims. Moore was sentenced to 30 months in prison and will serve three years of supervised release. A restitution order is expected to follow.
The case of Shane Donovan Moore is just one example of the soaring crypto scams that have plagued the industry. According to the FBI, crypto-related losses hit $9.3 billion in 2024, a 66% increase from the previous year. Investment scams accounted for over 50% of total losses, with more than 149,000 complaints filed.
Experts warn that most scams could be prevented by changing user behavior. Navin Gupta, CEO of Crystal, emphasized the importance of assuming every unsolicited message is a potential attack and adopting a mindset of “deliberate doubt” when dealing with cryptocurrency transactions.
As the crypto space continues to evolve, it is crucial for investors to stay vigilant and verify the legitimacy of any investment opportunity. The case of Shane Donovan Moore serves as a cautionary tale of the risks associated with fraudulent schemes in the cryptocurrency market.