Former semi-professional rugby player Shane Moore was sentenced to 30 months for orchestrating a fraudulent crypto mining scheme. He defrauded investors out of more than $900,000 under false pretenses.
Fraud behind crypto reward promises
According to federal prosecutors, Moore founded Quantum Donovan LLC, promising to buy and operate crypto mining equipment. Investors were told their funds would be used to purchase high-powered computers capable of generating digital currency around the clock. He promised daily returns of 1% on investments and signed service agreements guaranteeing $130 per day for each mining machine.
Lavish spending after falsified returns
The FBI's findings revealed that Moore transferred funds intended to buy equipment into his personal accounts. He used these funds to support a lavish lifestyle, purchasing electronics, clothing, and luxury apartment deposits, while also using part of investors' money to make limited returns to early investors to keep the scheme running.
Ponzi scheme victims included friends and athletes
Moore's victims came from various states, including Utah, Oregon, Connecticut, New Jersey, and Washington. Many were drawn into the scheme through his rugby connections, leading to strained relationships. During sentencing, Judge Lin remarked on the emotional and psychological harm inflicted on the victims, with prosecutors estimating over $900,000 was solicited from about 40 individuals, with actual financial losses exceeding $387,000.
Shane Moore has been sentenced to 30 months in prison for his fraudulent activities and is required to pay restitution to victims, highlighting the importance of caution in cryptocurrency investments.
