A former semi-pro rugby player is going to prison for running a cryptocurrency scam. Shane Donovan Moore, 37, from Seattle, was sentenced to two and a half years for defrauding over 40 investors.
The Scheme: Fake Mining, Real Losses
Between 2021 and 2022, Moore’s company, Quantum Donovan LLC, promised investors a 1% daily return on their money, supposedly invested in cryptocurrency mining equipment. The catch? He never bought any mining equipment.
Instead, he used the over $900,000 he collected to pay for his lavish lifestyle – think luxury travel, fancy clothes, and electronics. Classic Ponzi scheme: he paid early investors with money from newer ones, creating the illusion of a successful business. He even sent some crypto to a few investors to keep up the charade.
In the end, investors lost over $387,000. The judge emphasized the significant emotional distress this caused. Many victims were people Moore knew through his rugby network.
Crypto Fraud on the Rise
The FBI investigated Moore’s scheme, highlighting the increasing problem of cryptocurrency fraud. They’re warning people to be wary of high-yield investment promises, especially in the crypto space. The government is cracking down on these schemes, and Moore’s sentence serves as a warning. The Justice Department stressed that Moore used the popularity of crypto to pull off an old-fashioned Ponzi scheme.