Seattle – A 36-year-old Seattle semi-pro rugby player was arrested on an indictment charging him with 9 counts of wire fraud. Shane Donovan Moore operated Quantum Donovan LLC – a Washington firm Moore claimed was buying and working cryptocurrency mining tools. The truth is, the indictment alleges the corporate by no means invested in such tools and operated as a Ponzi scheme, with the investments from later traders getting used to repay earlier traders. Moore made his preliminary look on the indictment Monday morning.
“Cryptocurrency traders can fall sufferer to all the identical fraud ways as any investor. Mr. Moore used a ‘Ponzi scheme,’ – a fraud that has been round for many years – and makes use of new investor cash to repay older traders till the scheme collapses,” stated U.S. Lawyer Tessa M. Gorman. “Up to now investigators have recognized 38 identified victims however imagine there could possibly be many extra. We urge any such traders to contact the FBI.”
“In line with the indictment, between January 2021 and October 2022, Moore allegedly made fraudulent guarantees to acquire investor cash. Moore claimed each verbally and in writing that the invested cash can be used to buy computer systems for a cryptocurrency mining operation. He advised traders they’d obtain 1% of their funding every day based mostly on the work of the mining machines. Nevertheless, Moore by no means bought the mining machines. He comingled the investor cash together with his private accounts and used some of these funds to reside a lavish life-style. Some of the funds have been used to buy cryptocurrency so {that a} portion of the funds could possibly be despatched to traders to lull them into believing the cryptocurrency mining operation existed.
An evaluation of accounts managed by Moore present he bought greater than $820,000 in cryptocurrency from crypto.com in the course of the course of the scheme. Different data present Moore transferring greater than $1 million in cryptocurrencies from his Coinbase account to different Coinbase accounts.
Moore recruited traders in Utah, Oregon, Connecticut, New Jersey, and Washington. Many of the traders are individuals he knew from his rugby actions.
Wire fraud is punishable by as much as 20 years in jail.
The fees contained within the indictment are solely allegations. An individual is presumed harmless except and till she or he is confirmed responsible past an inexpensive doubt in a courtroom of regulation.
The case is being investigated by the FBI.
The case is being prosecuted by Assistant United States Lawyer Brian Wynne.