Crypto Fraud Kingpin Sentenced to 8 Years in $40M Ponzi Scheme—DOJ Slams the Gavel
Crypto's latest villain gets a prison-shaped reality check.
The Hammer Drops
A federal judge just handed down an 8-year sentence to the architect of a $40 million crypto Ponzi scheme—proving even Web3 grifters can't outrun the DOJ.
Follow the (Disappearing) Money
The mastermind promised moon-shot returns but delivered classic pyramid economics—new investor funds paid old investors until the whole house of cards collapsed. Some things never change, whether it's 1929 or 2025.
Regulators Finally Wake Up
While crypto maximalists scream 'FUD,' this case shows regulators are increasingly willing to prosecute blatant fraud—even when it's wrapped in blockchain buzzwords.
Another cautionary tale for the 'number go up' crowd. Maybe DYOR should include checking if your investment strategy is literally a federal crime.
No Real Trading Took Place: DOJ Exposes Crypto Scam Network
United States Attorney Nocella noted that the companies only lured investors with promises of guaranteed high returns from overseas cryptocurrency trading. However, prosecutors say none of the companies engaged in any real trading activity.
Instead, the defendants used incoming investor funds to pay earlier investors or diverted the money for personal use, consistent with a Ponzi scheme.
FBI Assistant Director Raia noted that the platforms raised more than $40 million in total. After the schemes collapsed, the defendants tried to hide their crimes by obstructing federal investigations.
Between July 2017 and March 2022, Golden, Aggesen, and WHITE attempted to hinder both a Federal Trade Commission (FTC) inquiry and a federal grand jury investigation. Authorities said they destroyed key evidence and gave false and misleading statements to investigators.
Notably, William White was previously sentenced to 30 months in prison for his role. Meanwhile, Aggesen and Egerton have pleaded guilty and are awaiting sentencing.
As part of his sentence, Golden was also ordered to forfeit roughly $2.46 million in illegal gains. The court will decide on restitution to victims at a later date.
Victims May Be Eligible for Restitution
In a glimmer of hope, The U.S. Attorney’s Office encouraged victims of EmpowerCoin.com, ECoinPlus.com, or Jet-Coin.com to submit restitution claims through the FBI.
“This office is committed to protecting investors and holding fraudsters accountable,” said U.S. Attorney Joseph Nocella. “We will continue to pursue justice for those harmed.”
Earlier this month, five individuals admitted guilt in a separate case involving a $36.9 million cryptocurrency fraud scheme. The group tricked U.S. citizens and funneled the stolen funds to a crypto scam operation based in Cambodia.
New report reveals Cambodia’s Officials Tied to $19B Crypto Scam Network Fueled by Forced Labor.#Cambodia #CryptoScam https://t.co/T0VHJdfkpY
With crypto-related scams growing, CertiK co-founder Ronghui Gu reported more than $2.1 billion already lost in 2025. The majority of these losses stem from compromised wallets and poor private key management.
Relatably, The DOJ filed a civil forfeiture complaint to seize $225.3 million in Tether’s USDT, marking the largest crypto seizure tied to a “pig butchering” investment scam.
@DOJCrimDiv seizes $225.3M in Tether’s USDT—largest crypto haul tied to pig butchering scam—funds traced via OKX in global fraud network.#CryptoFraud #USDThttps://t.co/0q6GUi99SZ
DOJ officials noted that the action is part of a broader crackdown on transnational scams, with over $9.3 billion in crypto losses reported in 2024, and $5.8 billion linked directly to investment fraud.
