A cryptocurrency CEO has admitted carrying out a massive Ponzi scheme, stealing millions from investors.
Travis Ford, 35, of Glenpool, Oklahoma, pleaded guilty on Monday to his involvement in a cryptocurrency investment fraud conspiracy.
Ford was the CEO, co-founder, and head trader of Wolf Capital Crypto Trading LLC (Wolf Capital), a firm he used to defraud investors of millions.
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How the Fraud Unfolded
The scheme operated from January to August 2023.
Ford advertised Wolf Capital as a sophisticated cryptocurrency investment firm capable of delivering extraordinary returns of 1-2% daily (approximately 547% annually).
However, Ford admitted in court that these promised returns were impossible to achieve consistently and were designed to lure unsuspecting investors.
Investor Losses
- Funds Raised: Wolf Capital collected $9.4 million from approximately 2,800 investors.
- Misuse of Funds: Instead of delivering returns, Ford and his co-conspirators misappropriated investor money for personal gain, causing significant financial harm to their clients.
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Legal Consequences
Ford pleaded guilty to one count of conspiracy to commit wire fraud.
He faces a maximum sentence of five years in prison. The sentencing date has not yet been set.
A federal district court judge will decide the final sentence, considering US Sentencing Guidelines and other factors.
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Key Takeaways for Investors
This case highlights the risks associated with cryptocurrency investments and the importance of vigilance when dealing with firms promising unrealistically high returns. Investors should:
- Research: Verify the credibility of investment firms.
- Be Skeptical: Question any offers of guaranteed or extraordinary returns.
- Report Suspicions: Alert authorities if fraud is suspected.
