- Dwayne Golden received 97 months in prison for running fake crypto trading companies that stole $40 million from investors.
- The companies promised guaranteed returns but never conducted actual trading and used new investor money to pay earlier victims.
- Golden must forfeit $2.46 million; his case adds to over $2.1 billion stolen in crypto fraud in 2025.
A federal judge in Brooklyn sentenced Dwayne Golden to 97 months in prison for orchestrating a $40 million cryptocurrency Ponzi scheme. The 57-year-old was convicted of wire fraud and money laundering charges for fraudulent operations across three digital asset companies.
Golden operated the scheme through EmpowerCoin, ECoinPlus, and Jet-Coin between April and August 2017. Federal prosecutors revealed that Golden and his associates promised guaranteed returns from cryptocurrency trading that never occurred. Instead, the defendants used new investor funds to pay earlier participants and enrich themselves.
The Department of Justice announced the sentencing on Friday, highlighting the classic structure of the Ponzi operation. Victims lost substantial amounts when the companies collapsed shortly after collecting deposits.
Fake Trading Operations Exposed
Golden worked alongside Gregory Aggesen and Marquis Egerton to market their firms as legitimate international cryptocurrency traders. The trio falsely represented their companies as engaged in active digital asset trading. None of the businesses conducted actual cryptocurrency transactions as promised to investors.
United States Attorney Joseph Nocella condemned the scheme as exploitation of investor enthusiasm for emerging technology. The prosecutor emphasized that Golden’s companies provided no legitimate services while deceiving victims about their operations.
After their businesses failed, Golden and his co-defendants attempted to obstruct investigations by federal authorities. They destroyed evidence and provided false information to the Federal Trade Commission and a federal grand jury examining their activities.
The court ordered Golden to forfeit approximately $2.46 million for his crimes. Co-defendant William White received a 30-month prison sentence for his role in the conspiracy. Aggesen and Egerton await their sentencing hearings.
FBI Assistant Director Christopher Raia described the operation as an elaborate deception designed to defraud investors through false promises. He praised the lengthy sentence as a deterrent for other potential cryptocurrency scammers.
The DOJ established a dedicated portal through the FBI for victims to submit restitution claims related to the scheme.
Growing Cryptocurrency Fraud Concerns
The Golden case reflects broader concerns about cryptocurrency-related fraud. Earlier this month, five defendants pleaded guilty to a $36.9 million crypto scam targeting Americans through social media and dating platforms. Those defendants funneled stolen funds to a cryptocurrency scam operation in Cambodia.
CertiK co-founder Ronghui Gu reported that over $2.1 billion has been stolen in crypto-related incidents during 2025. Most losses stem from wallet compromises and key mismanagement issues.
The cryptocurrency industry continues facing scrutiny from federal regulators and law enforcement agencies as fraudulent schemes target unsuspecting investors seeking exposure to digital assets.
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