Crypto CEO Admits $9.4 Million Fraud | CryptoTvplus

As in every industry, scammers abound in the cryptocurrency market, with the CEO admitting to defrauding 2,800 investors out of $9.4 million.

In a case that highlights the dangers of fraudulent schemes in the fast-growing world of cryptocurrencies, Travis Ford, an Oklahoma man, admitted to: deception Thousands of investors to give him their money. Ford, 35, of Glenpool, was co-founder, CEO and lead trader of Wolf Capital Crypto Trading LLC.

Wolf Capital Crypto Trading LLC claims to be a cryptocurrency investment firm specializing in digital asset trading. The company promoted itself as a platform where people can invest their money and earn high returns, through advanced and sophisticated trading strategies.

Starting in January 2023, Ford used Wolf Capital’s website and various social media platforms to promote what appeared to be a highly profitable investment opportunity. He promised potential investors daily returns of between 1 and 2%, which works out to a staggering 547% per year.

These promises were very attractive, especially to people looking to grow their wealth quickly. However, Ford later admitted that he knew from the beginning that these returns were impossible to achieve consistently.

Ford’s strategy was based on creating confidence and excitement around his abilities as a skilled cryptocurrency trader. Many people, eager to cash in on the booming cryptocurrency market, believed his claims and invested their hard-earned money. Between January and August 2023, about 2,800 investors pumped a total of $9.4 million into Wolf Capital.

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Instead of using the money for legitimate investments, Ford kept the money for himself and his partners. He spent the money on personal luxuries and left his investors with nothing. This type of scheme, known as a Ponzi scheme, involves using new investors’ money to pay fictitious dividends to previous investors to maintain the illusion of success. Eventually, such schemes collapse, leaving most participants in financial ruin.

When confronted with the evidence, Ford pleaded guilty to conspiracy to commit wire fraud, a serious crime punishable by a maximum of five years in prison. His sentencing date has not yet been set. A federal judge will review the details of the case and decide the appropriate sentence based on legal guidelines.

The US Postal Inspection Service, which specializes in investigating crimes such as fraud and fraud, is handling the case. Brent Whipple, a senior Justice Department official, and Eric Shin, a senior investigator for the Postal Inspection Service.

This case serves as a cautionary tale for anyone considering investments that promise unrealistic returns either as an investor or as an investment provider, as was the case with Travis Ford.