Shane Moore, a former semi-pro rugby player from Seattle, was sentenced for defrauding investors of $900,000 through a fake crypto mining scheme.
Fraud Scheme
Moore, founder of Quantum Donovan LLC, promised investors significant returns from investments in cryptocurrency mining equipment. However, investigations revealed he never acquired a single machine and instead ran a classic Ponzi scheme, paying early investors with the money from new ones.
Misuse of Funds
According to court filings, Moore mixed investor funds with personal accounts, spending the money on luxury travel, designer luggage, electronics, and rent for a high-end apartment. He promised investors a daily return of 1%, using their money for personal expenses.
Consequences and Reactions
Moore was charged in March 2024, and on Wednesday, U.S. District Judge Tana Lin noted that his actions caused not only financial harm but also emotional suffering among victims. Moore left a trail of damaged relationships among investors, many of whom were acquaintances from rugby.
Crypto-related fraud remains a serious issue in the U.S., as regulators continue to crack down on scams that threaten citizens' investments.
