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A federal judge in Brooklyn has sentenced Dwayne Golden, 57, to nearly eight years in prison for his role in orchestrating a massive crypto Ponzi scheme. Golden, along with co-conspirators, defrauded investors of over $40 million through three fraudulent digital asset firms: EmpowerCoin, ECoinPlus, and Jet-Coin.
Crypto Kingpin Sentenced: $40 Million Ponzi Scheme Unraveled
Dwayne Golden, a central figure in a sophisticated cryptocurrency Ponzi scheme, has been handed a 97-month prison sentence. The conviction stems from charges of wire fraud and money laundering, revealing a scheme that promised guaranteed returns from crypto trading but instead funneled investor funds into repaying earlier investors or enriching the perpetrators.
Key Takeaways
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Dwayne Golden received a 97-month (approximately 8 years) prison sentence for wire fraud and money laundering.
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The scheme involved three fraudulent crypto firms: EmpowerCoin, ECoinPlus, and Jet-Coin.
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Investors were defrauded of over $40 million.
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The operation ran between April and August 2017.
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Golden and co-defendants attempted to obstruct federal investigations.
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Golden was ordered to forfeit approximately $2.46 million.
The Deceptive Operations
Between April and August 2017, Golden, alongside Gregory Aggesen and Marquis Egerton (also known as Mardy Eger), falsely marketed their companies as legitimate international crypto traders. Prosecutors confirmed that these companies offered no genuine services and engaged in no actual cryptocurrency trading. The funds collected from new investors were used to pay off earlier investors, a classic Ponzi scheme structure, or were diverted for personal gain. Shortly after collecting substantial investor deposits, the companies collapsed, leaving victims with significant financial losses.
Obstruction and Accountability
Following the collapse of their fraudulent enterprises, Golden and his co-defendants actively attempted to obstruct both a Federal Trade Commission probe and a federal grand jury investigation. These efforts included destroying evidence and providing false information to authorities. United States Attorney Joseph Nocella highlighted that the scheme exploited investor excitement surrounding new technology.
Co-Conspirators and Restitution
While Golden received a substantial sentence, his co-defendant William White was sentenced to 30 months. Gregory Aggesen and Marquis Egerton are currently awaiting their sentencing. The Department of Justice has urged investors who suffered losses from this scheme to submit restitution claims through the FBI’s dedicated portal. This case serves as a stark warning to those who seek to exploit the burgeoning crypto market for illicit gains, emphasizing the commitment of law enforcement to prosecute such fraudulent activities.
Sources
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