The company demands that all stolen funds be returned to the affected investors.
Silver Miller – a US law firm specialising in crypto investment – has opened a federal lawsuit concerning an alleged Ponzi scheme led by one Jeremy Spence.
The case – as per a release published on Wednesday – claims that Spence issued hedge funds through a fake entity called Coin Signals in order to sell investments.
He also advertised such hedge funds by claiming to be a successful crypto trader who could offer investors large returns, soliciting investors all over the world to join the venture in discussions on Telegram and Discord.
According to the lawsuit, however, Spence was “nothing more than a young, energetic con man who was operating a classic Ponzi scheme.” The purported hedge fund had not been registered with “any regulatory authority,” and investor funds had been collected in common trading accounts across several crypto exchanges such as Coinbase and Binance without accreditation.
Meanwhile, Spence sold returns from newer investors to older investors under the pretense that they were authentic investment profits, while keeping a sizeable portion of those investments to pay personal expenses.
The stolen assets have allegedly since been transferred by Spence to his parents, who are believed to be holding the funds in crypto wallets under their names, the lawsuit explains.
Following the complaint, Spence will get a chance to give his view in a trial by jury. Until then, Silver Miller have expressed that the stolen crypto investments should be returned to the affected investors and that a constructive trust is imposed over Spence’s funds.
Source: PR Newswire