A founder of a cryptocurrency investment company admits to using Ponzi schemes to defraud thousands of investors of $9.4 million
According to a statement released by the US Department of Justice, an Oklahoma man has pleaded guilty to involvement in a cryptocurrency investment fraud conspiracy. According to court documents, Travis Ford, 35, from Glenpool, is the CEO, co-founder, and chief trader of Wolf Capital Crypto Trading LLC (Wolf Capital), a so-called cryptocurrency investment company. From January 2023 to August 2023, Ford will attract investment through Wolf Capital's website and other social media and Internet based promotion activities. Ford claims to be a seasoned trader who can generate high returns of 1-2% per day (approximately 547% per year). Ford admits that he does not believe that the promised investment returns can be sustained. Ford made such false promises to entice the public to invest in the company. Ford misappropriated and transferred investor funds to benefit itself and its accomplices, damaging the economic interests of investors. Wolf Capital raised $9.4 million through fraudulent activities from approximately 2800 investors. Ford has admitted to a charge of conspiracy to commit telecommunications fraud, which can result in a maximum sentence of five years in prison. The verdict date has not been determined yet. Federal district court judges will determine the sentence after considering U.S. sentencing guidelines and other statutory factors.