In a Brooklyn federal court, Dwayne Golden was sentenced to 97 months in prison for running a Ponzi scheme using cryptocurrency that defrauded investors of $40 million.
Details of the Fraud
Golden operated three cryptocurrency ventures — EmpowerCoin, ECoinPlus, and Jet-Coin. These companies promised fixed and guaranteed returns from supposedly high-level trading operations. Investors were led to believe their money was being used in overseas digital asset trades. However, there were no trades involved; this was an old-fashioned Ponzi scheme disguised as Web3 marketing.
Overview of the Sentence
The court sentenced Golden to 97 months in prison and ordered him to forfeit approximately $2.46 million in ill-gotten gains. Earlier, co-conspirator William White was sentenced to 30 months. Golden and his associates also attempted to obstruct justice by destroying documents and providing false testimony.
Wider Implications of the Fraud
According to recent data from the Federal Trade Commission, American consumers lost over $12.5 billion to fraud in 2024, marking a 25% increase from the previous year. Investment scams were the most damaging, resulting in losses totaling $5.7 billion.
Golden’s case highlights the severity of cryptocurrency fraud and the importance of safeguarding investors against such schemes.
