$40 Million Crypto Fraud Ends in Prison Time
The crypto scam sentencing of Dwayne Golden is a significant legal milestone in crypto-related crime enforcement. Golden was ordered to 97 months in jail by a federal judge in Brooklyn for swindling investors. Three companies — EmpowerCoin, ECoinPlus, and Jet-Coin — were part of the scheme and guaranteed returns.
Golden and his crew did not perform any actual trading but instead used money to return it to previous investors or make personal gains. This is typical of a textbook Ponzi scheme that collapsed after money was raised. Golden, who is 57 years old, was convicted of wire fraud and money laundering for his central role in the scheme.
Dwayne Golden sentenced to 8 years in prison
EmpowerCoin, ECoinPlus, and Jet-Coin Collapse
The schemes lasted from April to August 2017, during a time of heightened crypto investment fervour. Golden agreed with Gregory Aggesen and Marquis Egerton (also known as Mardy Eger) to sell bogus services. They advertised their sites as global crypto trading companies with high assured returns.
None of the companies, however, actually traded in crypto as purportedly promised investors. Shortly after accepting deposits, the companies went out of business victims to lose and not receive returns. This collapse led the Federal Trade Commission and the Department of Justice to start investigations.
Attempted Cover-Up and Evidence Destruction
After the collapse, Golden and his co-defendants supposedly hindered federal probes. They allegedly destroyed records, erased files, and misled investigators to evade responsibility. These actions deepened the legal repercussions, underlining the gravity of their fraud.
Prosecutors said the deception by the group went beyond investors to federal officials. Their lack of cooperation demonstrated an outright disregard for legal processes and public trust. United States Attorney Joseph Nocella characterised the case as “a clear abuse of investor optimism in new technology.”
Destroyed Evidence to Mislead Investigators
Sentences Handed Down and More Awaited
Beyond Golden’s crypto scam sentencing, other members of the group received legal consequences as a result. William White, another co-conspirator, was given a 30-month sentence for his role in the fraud. Gregory Aggesen and Marquis Egerton await sentencing, with further penalties yet to come.
Golden was also ordered to forfeit $2.46 million under the verdict. The FBI has initiated a portal where victims can file restitution claims in regard to the scam. Officials are determined to compensate those who were duped by the illusory investment platforms.
Crypto Crime Continues to Rise Globally
Crypto fraud remains a significant issue in 2025, with over $2.1 billion lost so far this year. The majority of these losses are due to wallet hacks, key management failures, and fictitious investment schemes. Earlier this month, five men were found guilty of a $36.9 million Cambodian crypto scam.
The victims were approached on social media and dating apps with offers of high-return investments. The FBI and DOJ are paying closer attention to these crimes, warning people to be on their guard. Crypto investors should check investment sites and stay away from projects offering guaranteed returns.
Illicit crypto transactions hit an estimated $51.3B in 2024, nearing 2022 peak levels.
Public Warning and Industry Lessons
The crypto scam conviction is a reminder of the dangers in untamed digital finance markets. FBI Assistant Director Christopher Raia described the case as “an elaborate scheme built on lies and greed.” He said Golden’s conviction should warn other scammers off exploiting investor trust. This case also speaks to the need for improved public education on the safety of crypto investing.
Authorities urge individuals to do their research prior to investing money in new ventures they know little about. The collapse of EmpowerCoin, ECoinPlus, and Jet-Coin also demonstrates the speed at which greed can destroy deceitful scams.
FBI’s Christopher Raia calls fraud case “a scheme of lies and greed” after Golden’s conviction.
Summary: A Wake-Up Call for Crypto Investors
The Dwayne Golden crypto scam case is a wake-up call for the risks of unregulated investment commitments in the digital asset market. With more than $40 million gone and several lives affected, the case is a harsh reminder. EmpowerCoin, ECoinPlus, and Jet-Coin all went down with the fraud of deceit and greed.
Authorities continue to crack down on fraud while urging investors to remain cautious and informed. As the crypto market evolves, due diligence and transparency must be prioritised to prevent similar future scams.
