{"id":1487,"date":"2018-12-27T09:47:08","date_gmt":"2018-12-27T14:47:08","guid":{"rendered":"https:\/\/www.silvermillerlaw.com\/?p=1487"},"modified":"2023-06-09T11:40:50","modified_gmt":"2023-06-09T11:40:50","slug":"silver-miller-files-lawsuit-against-creator-of-alleged-crypto-ponzi-scheme","status":"publish","type":"news_posts","link":"https:\/\/www.silvermillerlaw.com\/press\/in-the-news\/silver-miller-files-lawsuit-against-creator-of-alleged-crypto-ponzi-scheme\/","title":{"rendered":"Silver Miller Files Lawsuit Against Creator of Alleged Crypto Ponzi Scheme"},"content":{"rendered":"

United States<\/a> crypto-focused law firm Silver Miller has filed a lawsuit against a purported crypto hedge fund manager who was allegedly operating a fraudulent<\/a> Ponzi<\/a> scheme. The court documents were published<\/a> to the Silver Miller website Dec. 26.<\/p>\n

The case \u2014 which has been filed at the Court of the Southern District of New York on behalf of multiple plaintiffs who invested in the scheme \u2014 alleges that Jeremy Spence, alongside a small cohort of accomplices, orchestrated a fake entity called \u201cCoin Signals.\u201d Spence is alleged to have deceptively represented himself as a successful crypto trader. He reportedly offered investors in his scheme \u201clucrative returns\u201d that he claimed were generated by the series of crypto hedge funds he purported to be managing.<\/p>\n

These hedge funds reportedly included an \u201cAlts Fund,\u201d a \u201cLong Term Fund,\u201d a \u201cmanaged entry\u201d to an Initial Coin Offering (ICO<\/a>) \u2014 dubbed \u201cEvermarkets ICO\u201d \u2014 and \u201cCoin Signals Mex (CSM) Fund,\u201d the latter of which is the primary focus of the lawsuit.<\/p>\n

In truth, the lawsuit contends, the returns were not profits from investments, but \u201cwere simply reallocations to older investors of new investors\u2019 assets\u201d in a classic Ponzi scheme configuration. As the court documents state, Spence fended off questions from his investors with excuses \u2014 such as hacks and family emergencies \u2014 in order to \u201cstall for time and plot his next move.\u201d<\/p>\n

The CSM Fund, as per Silver Miller, was not registered as a hedge fund with any U.S. regulatory authority, and failed to adhere to any of the regulatory requirements a legitimate investment fund is compelled to follow. At its height, the CSM Fund in particular is alleged to have held as much as 1,300 Bitcoin (BTC<\/a>) deposited by the scheme\u2019s investors \u2014 valued at the time at over $10 million.<\/p>\n

When the CSM fund scheme started to fall apart in late 2018, Spence is alleged to have prevented the fund\u2019s participants from withdrawing their assets. The lawsuit thus \u201cpleads that the Court rescind the investments in the fraudulent Coin Signals funds; return to the investors their cryptocurrency; impose a monetary penalty against Spence and his collaborators for their fraud, and impose a constructive trust over the assets collected by Spence.\u201d<\/p>\n

As\u00a0reported<\/a>\u00a0earlier this fall, a New York federal\u00a0court<\/a>\u00a0ordered a crypto hedge fund and its CEO \u2014 who had reportedly solicited over $600,000 from at least 80 investors \u2014 to pay over $2.5 million for operating a fraudulent Ponzi scheme. The order was pursuant to an anti-fraud enforcement action first \u00a0filed<\/a>\u00a0by the U.S.\u00a0Commodity Futures Trading Commissio<\/a>n against the fund last year.<\/p>\n

Read the Full Article:<\/p>\n

Silver Miller Files Lawsuit Against Creator of Alleged Crypto Ponzi Scheme<\/a><\/p>\n","protected":false},"featured_media":1781,"template":"","meta":{"_acf_changed":false,"_links_to":"","_links_to_target":""},"news_categories":[10],"class_list":["post-1487","news_posts","type-news_posts","status-publish","has-post-thumbnail","hentry","news_categories-uncategorized"],"acf":[],"yoast_head":"\nSilver Miller Files Lawsuit Against Creator of Alleged Crypto Ponzi Scheme - SilverMillerLaw.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.silvermillerlaw.com\/press\/in-the-news\/silver-miller-files-lawsuit-against-creator-of-alleged-crypto-ponzi-scheme\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Silver Miller Files Lawsuit Against Creator of Alleged Crypto Ponzi Scheme - SilverMillerLaw.com\" \/>\n<meta property=\"og:description\" content=\"United States crypto-focused law firm Silver Miller has filed a lawsuit against a purported crypto hedge fund manager who was allegedly operating a fraudulent Ponzi scheme. 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