Cryptocurrency investor law firm based in the United States, Silver Miller, announced on Wednesday that it has commenced a new federal court lawsuit against Jeremy Spence, an alleged operator of a cryptocurrency Ponzi scheme.
According to the statement released on Wednesday, the lawsuit claims that Spence, through a sham entity Coin Signals, sold investments in a series of fraudulent hedge funds.
The lawsuit is seeking for the Court to “rescind the investments in the fraudulent Coin Signals funds; return to the investors their cryptocurrency; impose a monetary penalty against Spence and his collaborators for their fraud, and impose a constructive trust over the assets collected by Spence,” the statement said.
Allegedly, Spence attracted clients through online discussions via Telegram and Discord, where he claimed to be a successful cryptocurrency trader and promised to generate solid returns through a set of hedge funds he was managing.
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Instead, however, Silver Miller claims that Spence was instead running a classic Ponzi scheme. That is, he was collecting funds from new investors and giving them to older investors under the guise that the funds were investment profits.
During this process, Spence allegedly pocketed large sums of money for himself, to pay for personal expenses and debts. At its highest point, the Ponzi scheme claimed to be managing more than $5 million worth of investor assets.
Silver Miller – the protector of consumers in the crypto space
This is the latest lawsuit filed by Silver Miller, which has shown itself to be a strong advocate for consumers in the cryptocurrency space. The firm has taken on cases for those harmed by the illegal actions of fraudulent digital asset exchanges, trading platforms, and investment promoters.
At present, the firm has actions pending against well-known cryptocurrency firms such as Coinbase, Kraken, BitConnect, and Cryptsy exchanges. Silver Miller also has lawsuits against pre-functional token ICO promoters Tezos and Monkey Capital.