Crypto Crime is a deal that any investor would forgo.
Crypto crimes have lately been on a surge due to absence of stringent framework consisting of rules and regulations which would keep the exchange, the trader, and everyone involved in the crypto market in check. As the crypto market increased of generating money for the people, the rate of crypto crime increased to a whole new level. Many criminals hacked the accounts of the investors and stole the crypto currencies. There were incidents were, the criminal robbed people of their crypto currencies by threatening at gun point. All these instances have certainly put a dent on the reputation of crypto currency market. Two regulatory bodies, SEC and DOJ are surely working hard to curtail the crimes involved with crypto currency.
Let’s look at one of the instances where the regulatory body DOJ caught a trader for fraudulent activities.
Jeremy Spence, a 25-year-old Rhode Island Crypto Currency trader known by “Coins Signal”, cheated around 170 people for approximately $5 million. According to an official, he had solicited funds from investors via several crypto investment pool, which he ran from November 2017 to April 2019. The biggest three crypto funds he dealt in were – Coin Signals Bitmex Fund, The Coin Signals Alternative Fund and The Coin Signals Long Term Fund. The accused is said to lure the investors falsely to invest more by falsely stating about the profits of the investment they had made and did not disclose the actual returns to the investors. But fortunately, DOJ learnt about the fraudulent activities of Spence and arrested him before he could cheat other investors.
The Arrest.
Spence was arrested in the month of January in 2021 by FBI. But, he tried his best to come out of the dirt. Finally, he accepted his mistake in November 2021. In addition to his jail term of 42 months, Spence will have three years of supervised release and pay restitution of over $2 million after his release.
Conclusion:
After reading the report, it is quite evident that even though the crime rates are surging rapidly in the crypto market, the regulator bodies such as SEC and DOJ are applying the best of their minds in curtailing the unfortunate events and to gain back the trust of the investors. In hindsight, SEC and DOJ might start working at putting different technical departments in handling different crimes related to crypto to decrease the time taken to deliver justice.
