Travis Ford, a co-founder of Wolf Capital and an alleged trader in the crypto market, has recently admitted to defrauding investors of $9.4 million. Ford was accused of wire fraud after luring about 2,800 investors with what became impossibly high exaggerated returns, and he has since been convicted.
The Department of Justice (DOJ) confirmed that the scam continued between January and August 2023. At this time, Ford invited investors and said he could earn “1-2% per day” or 547% per year. However, rather than investing the money as planned and supporting the company’s growth, as promised to investors, Ford embezzled the cash for dishonest personal gain and to subsidize his co-suspect.
Fraudulent promises and misuse of investor funds
Ford was very strategic in portraying himself as a well-experienced investor with vast knowledge in the share trading business through the Wolf Capital website, Facebook, Twitter, and even using Google ads. That was the case once the investors handed over their money; they were reinvested in other uses that can hardly be considered purely financial business. Instead of going into the business, the funds were channeled to Ford’s account and those of his cronies.
The DOJ said, and I quote, ‘Although Ford assured everyone that the enhanced planning system would yield the specified returns, it acknowledged that generating specified profit was impossible.’ Unquote. His fraud subsequently led to Ford being indicted for one count of conspiracy to commit wire fraud, a federal offense with a maximum penalty of five years imprisonment. The court has not yet set a sentencing date.
Crypto fraud on the rise globally
Ford’s case is a classic example of the increasing incidence of cryptocurrency-related fraud across the globe. In another recent event, four persons in Vietnam were arrested for a cryptocurrency mining scam that had duped over 200 people, amounting to 4 billion Vietnamese dongs or $157,300.
Springfield, Massachusetts, in the United States, has been among the authorities that have cautioned citizens about the increase of Bitcoin and blockchain fraud. The usual tricks include using ATMs for cryptocurrency. Police have asked public members to be cautious and refuse to pay any amount to individuals who claim to be holding Bitcoin.
Billions lost to Crypto criminals
Ford’s case is a classic example of the increasing incidence of cryptocurrency-related fraud worldwide. In another recent event, four persons in Vietnam were arrested for a cryptocurrency mining scam that duped over 200 people, amounting to 4 billion Vietnamese dongs or $157,300.
Springfield, Massachusetts, in the United States, has been among the authorities that have cautioned citizens about the increase of Bitcoin and blockchain fraud. The usual tricks include using ATMs for cryptocurrency. Police have asked public members to be cautious and refuse to pay any amount to individuals who claim to be holding Bitcoin.