Blockchain Fraudster Indicted: How One Man Scammed Millions with a Fake Startup!

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Fake Blockchain Startup Founder Indicted for Wire, Securities Fraud

As a researcher, I’m uncovering the story of Jeremy Jordan-Jones, who stands accused by federal authorities of swindling investors through a supposedly fraudulent blockchain company. The allegations claim that he misused the investments, channeling the funds towards lavish personal expenses instead.

Amalgam Blockchain Founder Indicted for Fraud

Federal authorities in the United States have officially accused Jeremy Jordan-Jones, who claims to be the founder of a supposed blockchain company called Amalgam, of participating in a large-scale fraud case. The U.S. Department of Justice (DOJ) declared on May 21 that Jordan-Jones was taken into custody and faced numerous charges, such as wire fraud, securities fraud, lying to a bank, and aggravated identity theft.

A Startup Built on False Claims

As per the prosecutors’ claims, Jordan-Jones ran Amalgam from January 2021 until November 2022, portraying it as an innovative blockchain business on the verge of dominating the market. U.S. Attorney Jay Clayton from Manhattan alleged that Jordan-Jones marketed his company as a pioneering blockchain startup with influential partnerships, but in reality, the company was a fraud, and the investors’ funds were diverted to fund his extravagant lifestyle.

The accusation outlines that Jordan-Jones deceitfully asserted that Amalgam had successfully negotiated lucrative contracts with well-known sports teams and significant payment service providers. These nonexistent alliances, along with deceptive comments regarding the company’s fiscal status, allegedly persuaded investors to invest more than a million dollars based on false information.

Misuse of Investor Funds

It’s claimed that Jordan-Jones gathered money from investors under the promise that their investments would be used for listing Amalgam’s digital currency token and managing operational costs like hardware and software. However, it’s alleged that instead of using the funds as promised, they were supposedly spent on personal expenses.

In addition to the accusations, it’s reported that Jordan-Jones allegedly presented forged financial statements to a banking institution with the intention of securing a corporate credit card. One of these documents claimed incorrectly that Amalgam possessed a bank balance over $18 million, when in reality, the account had been closed since late 2021 and contained no funds.

Potential Penalties and Asset Forfeiture

If found guilty, Jordan-Jones may experience significant legal penalties. Each count of wire and securities fraud carries a possible sentence of up to 20 years in prison, while making false statements to a bank could lead to a maximum term of 30 years. Additionally, the charge for aggravated identity theft mandates a minimum sentence of two years.

Officials plan to seize any assets and properties that are believed to be linked to the suspected fraud, even substitutes if needed, as part of their efforts to take action against the alleged wrongdoing.

Broader Crackdown on Crypto-Related Crime

The situation unfolds at a time when the cryptocurrency industry is under increased examination by regulatory bodies. The Department of Justice has pointed out that such scams frequently mask themselves behind claims of advanced technology. A recent FBI study revealed that losses due to crypto-related fraud and blackmail reached approximately $9.3 billion last year.

This recent action is part of a larger trend in legislation within the sector, which includes the progression of the GENIUS Act through the U.S. Senate. This act is a proposed bill aimed at implementing regulatory control over stablecoins.

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2025-05-22 19:23