A US court sentenced a man to five years in prison for his leading role in a $9.4 million cryptocurrency Ponzi scheme.
He was also ordered to pay over $1 million in forfeiture and over $170,000 in restitution.
Wolf Capital CEO Found Guilty
Travis Ford, a 36-year-old resident of Glenpool, Oklahoma, was the CEO of Wolf Capital Trading LLC, a cryptocurrency investment firm that raised nearly $10 million from around 2,8000 investors.
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According to the US Department of Justice, Ford spent 2023 soliciting investments through his website and various online promotions. He portrayed himself as an experienced trader capable of generating daily returns ranging from 1% to 2% for investors.
During Ford’s court process, prosecutors argued that he ultimately diverted and misappropriated those funds for personal use and to support his co-conspirators.
In January, Ford admitted guilt to a single charge of conspiracy to commit wire fraud. As part of his plea, he acknowledged knowing that the investment returns he advertised could not be consistently delivered.
This case marks yet another crypto-related Ponzi scheme to surface in the headlines in recent months.
Crypto Fraud Surges Worldwide
In recent months, several major crypto Ponzi schemes have reappeared in headlines worldwide.
A similar case came last month, when Thai authorities arrested Chinese national Liang Ai-Bing in Bangkok. He is accused of helping run the FINTOCH scheme, which allegedly stole more than $31 million from nearly 100 investors across Asia. Officials say the operation spanned multiple countries and relied on aggressive online marketing.
In August, a New York court issued another major ruling. Judges ordered EminiFX founder Eddy Alexandre to repay $228 million after regulators determined his AI-themed platform was a large-scale fraud. The scheme heavily targeted immigrant communities in the United States.
A third case surfaced weeks earlier in Detroit, when city officials sued Florida-based RealT for selling tokenized shares of homes it never owned. The company raised roughly $2.72 million from investors through these offerings.
While Ford’s conviction highlights a tougher stance from authorities, the wave of recent cases makes clear that crypto fraud is spreading faster than enforcement can keep up.
Source: https://beincrypto.com/us-crypto-scam-verdict-wolf-capital-ceo/
