A Spokane man, Michael Joseph McElhiney, is going to prison for running a crypto investment scam. He defrauded investors out of over $350,000.
How the Scam Worked
McElhiney created a fake crypto investment fund called MAC Blockchain Solutions. He posed as an experienced investor, promising huge returns on investments in various cryptocurrencies. He made it all sound very impressive, talking about Ethereum staking and liquidity pools.
But the truth? He pocketed the money. He used the stolen funds for his own expenses, including gambling.
Finding Victims
McElhiney was sneaky about finding victims. He met people through:
- Uber rides
- Dating apps
- Online video games (like Call of Duty – his username was “Bing Bong”)
He’d build relationships to gain their trust before asking for investments. He even used a fake platform, Coin.FYI, to show investors false information about their supposed growing investments. He promised easy withdrawals and guaranteed returns—all lies. He even stole rare art and precious metals from some victims.
When people tried to get their money back, he made up excuses like security breaches or theft. He kept the scam going by lying and manipulating his victims.
The Aftermath
McElhiney was sentenced to 41 months in prison, three years of supervised release, and has to pay back $326,119. He was taken into custody immediately after the hearing.
US Attorney Vanessa Waldref expressed sympathy for the victims, highlighting the financial and emotional damage McElhiney caused. She praised the investigators and prosecutors who brought him to justice.
Matthew Murphy, acting Special Agent in Charge for Homeland Security Investigations in Seattle, warned others about similar scams. He emphasized that law enforcement will pursue these criminals, no matter what technology they use.
