Amalgam Capital Founder Indicted for $1M Blockchain Fraud

The founder of Amalgam Capital Ventures, Jeremy Jordan-Jones, has been indicted by a US grand jury on charges of defrauding investors out of over $1 million through a fake blockchain scheme. Jordan-Jones was arrested and charged on May 21 with wire fraud, securities fraud, making false statements to a bank, and aggravated identity theft.

According to the Department of Justice, Jordan-Jones promoted his company as a groundbreaking blockchain startup, but in reality, the company was a sham. Investors' funds were allegedly siphoned off to support his lavish lifestyle. FBI Assistant Director Christopher Raia alleged that Jordan-Jones defrauded investors through misrepresentations of his company's capabilities, partnerships, and investment intentions.

From January 2021 to November 2022, Jordan-Jones deceived investors and financial institutions using fabricated documents, fake sports partnerships, and misleading claims. The indictment filed in a Manhattan federal court states that Amalgam claimed to offer point-of-sale systems and blockchain-based payment and security solutions. However, the firm had no operable products, few if any customers, and zero legitimate business partnerships.

Instead of investing the funds into tech development and crypto exchange listings as promised, Jordan-Jones spent the money on luxury vehicles, high-end vacations, clothing, and fancy restaurants in Miami. He was also accused of submitting a fake bank statement claiming Amalgam held over $18 million to secure a company credit card, although prosecutors claimed there were no funds in the bank account and it had been closed in late 2021.

The charges against Jordan-Jones carry significant penalties, including up to 20 years in prison for wire fraud and securities fraud, up to 30 years for making false statements to a bank, and a mandatory sentence of two years for aggravated identity theft. The government is seeking forfeiture of any property or money traceable to the fraud, including substitute assets if the original funds are unavailable.

This case underscores the growing concern over fraudulent activities in the blockchain and cryptocurrency sectors. As these technologies gain popularity, the risk of investors falling victim to scams and deceptive practices increases. The charges against Jordan-Jones serve as a reminder of the importance of due diligence and regulatory oversight to protect investors.

The legal proceedings against Jordan-Jones are ongoing, and the outcome of the case will have significant implications for the blockchain industry. The charges highlight the need for greater transparency and accountability within the sector, as well as the importance of educating investors about the risks associated with investing in emerging technologies. This case also serves as a cautionary tale for entrepreneurs and investors, emphasizing the consequences of engaging in fraudulent activities and the importance of adhering to ethical business practices.