False statements resulted in investors providing Spence with additional funds.
Some of Spence’s false representations included him stating that his trading is extremely profitable when in reality, it had always been unprofitable. According to the Department of Justice:
“To hide his trading losses, SPENCE used new investor funds to pay back other investors in a Ponzi-like fashion. In total, SPENCE distributed cryptocurrency worth approximately $2 million to investors substantially from funds previously deposited by other investors.”
Pleading guilty to commodities fraud, Spencer will face a maximum of 10 years in prison.
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Source: Cryptocurrency - investing.com
