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R.I. man will get 3 years for cryptocurrency fraud


A 25-YEAR-OLD Rhode Island man who federal prosecutors say defrauded greater than 170 individuals who poured tens of millions of {dollars} into his cryptocurrency funding enterprise was sentenced in New York City on Wednesday to greater than three years in jail and ordered to pay greater than $2.8 million in restitution. /PBN FILE PHOTO

NEW YORK (AP) – A 25-year-old Rhode Island man who federal prosecutors say defrauded greater than 170 individuals who poured tens of millions of {dollars} into his cryptocurrency funding enterprise was sentenced in New York City on Wednesday to greater than three years in jail and ordered to pay greater than $2.8 million in restitution.

Jeremy Spence, of Bristol, Rhode Island, solicited greater than $5 million in investments by false representations, together with bogus statements displaying his cryptocurrency buying and selling was very worthwhile when in actual fact it persistently misplaced cash, Damian Williams, U.S. Attorney for the Southern District of New York, stated in a press release.

As he misplaced cash, Spence used new investor funds to pay different buyers in a Ponzi-like scheme, Williams stated. In whole, Spence distributed about $2 million value of cryptocurrency to buyers utilizing funds beforehand deposited by different buyers, prosecutors stated.

Spence, who beforehand pleaded responsible to a felony fraud cost, was sentenced to 42 months in jail by U.S District Judge Lewis Kaplan in Manhattan.

Spence’s legal professionals, Sylvie Levine and Neil Kelly of the Federal Defenders of New York, stated in courtroom paperwork that Spence dedicated the crimes when he was 21 and 22 years outdated, the results of getting “in over his head” with the crypto enterprise.

“The money wasn’t stolen or secreted away; it was lost in new, unregulated, volatile markets after it was entrusted to a 21-year-old college drop-out who should never have had that much responsibility in the first place,” they wrote. “In the real world, in traditional markets, no company would ever have entrusted him with that level of responsibility.”

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