Significant Legal Action Against Cryptocurrency Fraud
The recent sentencing of Dwayne Golden, a 57-year-old Pennsylvania resident, marks a significant legal blow against fraudulent activities in the cryptocurrency industry. Golden has been handed a prison term of 97 months—almost eight years—due to his role in orchestrating a large-scale scam that duped investors out of $40 million.
Details of the Fraudulent Operation
His illicit operation included several fictitious cryptocurrency ventures known as EmpowerCoin, ECoinPlus, and Jet-Coin, which falsely promised guaranteed returns on investments through nonexistent overseas trading activities between April and August of 2017.
U.S. Attorney Joseph Nocella highlighted that Golden and his accomplices, Gregory Aggesen and Marquis Demacking Egerton, capitalized on the public’s growing fascination with innovative technologies to perpetrate an old-fashioned scam. “These companies did not offer genuine services and failed to engage in any real cryptocurrency transactions, as they had advertised,” he stated.
Obstruction of Justice and Financial Penalties
Following the collapse of their fraudulent enterprises, Golden and his associates attempted to hinder the investigation. They reportedly destroyed crucial evidence and misled the Federal Trade Commission during inquiries. In addition to serving his time, Golden is also obligated to forfeit around $2.46 million, which is believed to be the ill-gotten gains from his scams.
Guilty Pleas and Ongoing Sentencing
All accused individuals involved, including William White, who received a 30-month prison sentence, have entered guilty pleas. Aggesen and Egerton’s sentencing is pending as of June 27th. The charges against Golden and his co-defendants included a range of serious financial crimes such as fraud and money laundering, stemming from their operations of the fraudulent firms, which were officially brought against them in March 2022.
