Crypto Ponzi Mastermind Sentenced to 8 Years Over $40M Fraud
A New York federal judge has sentenced Dwayne Golden to over eight years in prison for leading a fraudulent cryptocurrency investment scheme that stole more than $40 million from unsuspecting investors.
Golden, 57, ran EmpowerCoin, ECoinPlus, and Jet-Coin—three sham companies that promised guaranteed profits from crypto trading. Prosecutors revealed there was never any trading activity; instead, the funds were used to repay earlier investors or personally enrich the scheme’s organizers, fitting the classic mold of a Ponzi operation.
The scam ran for just four months in 2017, but its impact was long-lasting. When the firms abruptly shut down, investors were left with nothing. Golden and his co-conspirators then tried to cover their tracks by obstructing federal investigations and destroying evidence.
“None of these companies ever traded a single cryptocurrency,” U.S. Attorney Joseph Nocella said, calling the operation a calculated exploitation of crypto hype.
Golden was ordered to forfeit $2.46 million. One co-defendant has already received a 30-month sentence, while two others await sentencing.
Authorities urge victims to file restitution claims via the FBI’s portal, warning that similar scams continue to spread. In a related case, five individuals recently admitted to running a $36.9 million crypto scam with links to Cambodia. According to blockchain security firm CertiK, more than $2.1 billion has already been lost to crypto fraud in 2025 alone.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
