SPOKANE, Wash. — A Spokane man was sentenced for stealing $350,000 from buyers in a cryptocurrency scheme.
In accordance with the U.S. Legal professional’s Workplace and courtroom paperwork, Michael McElhiney, 38, defrauded buyers by posing because the operator of a cryptocurrency investment fund known as MAC Blockchain Options. The scheme occurred between March 4, 2021, and Sept. 10, 2022. McElhiney promised potential buyers that he and his alleged enterprise companions ran a profitable cryptocurrency investment fund that invested in rising cryptocurrencies and different blockchain-based tasks, comparable to Ethereum staking and cryptocurrency liquidity swimming pools.
In accordance with the prosecutor’s workplace, McElhiney usually contacted victims in individual, together with Uber drivers he met throughout rides and girls he encountered by relationship apps. He additionally met victims on-line whereas enjoying the online game Name of Obligation below the username “Bing Bong.” McElhiney typically met with victims a number of occasions, creating private relationships earlier than soliciting and receiving funds.
McElhiney promised to speculate the victims’ cash and handle their investments. He assured them they may withdraw their funds at any time and assured returns on their investments. He supplied info by a platform known as Coin.FYI that appeared to trace the progress of the investments. Nonetheless, McElhiney didn’t make investments the funds and as a substitute used them for private bills, together with playing at casinos. The Coin.FYI accounts he confirmed to buyers have been fabricated to create the phantasm of rising investments.
McElhiney defrauded buyers of greater than $350,000, together with money, uncommon artwork and valuable metals.
When victims tried to withdraw their investments, McElhiney falsely claimed that varied points, together with safety breaches, his absence from the nation, theft, and issues with cost processing platforms, prevented the return of their funds.
“Immediately’s sentencing serves as a transparent reminder that those that prey on the belief of others by fraudulent schemes will likely be held accountable,” mentioned Matthew Murphy, performing particular agent in cost of HSI Seattle. “This particular person exploited the attract of digital foreign money to deceive and steal from numerous buyers. We stay dedicated to investigating and prosecuting those that try to govern others for private acquire, whatever the platform or expertise they use. We respect the tireless work of our regulation enforcement companions and the U.S. Legal professional’s Workplace to carry people like McElhiney to justice.”
McElhiney was sentenced to 41 months in federal jail, three years of supervised launch, and ordered to pay $326,119.95 in restitution.
