Amalgam Founder Charged With $1M Crypto Fraud

US prosecutors have filed a case against the self-styled head of a purported blockchain firm, Amalgam, for his alleged involvement in wire fraud. The founder, Jeremy Jordan-Jones, is accused of defrauding investors of over $1 million by misrepresenting his company and its partnerships. According to the Department of Justice (DOJ) release, Jordan-Jones used investors’ money to fund a lavish lifestyle.

Jordan-Jones falsely claimed that Amalgam had lucrative high-profile partnerships with major-league sports teams and prominent payment-processing platforms. He also made misleading statements regarding the blockchain firm’s financial condition. U.S. Attorney Jay Clayton stated, “Jordan-Jones’s company was a sham, and investors’ funds were siphoned off to bankroll his lavish lifestyle.”

Additionally, Jordan-Jones solicited investments by promising that the money would be used to initiate the listing of Amalgam’s crypto coin. He also promised to use the investors’ money for hardware, software, and other expenses associated with the Amalgam’s operations. Further, he submitted falsified financial statements to a bank.

The FBI warned users that fraudsters often use the “promise of new technology to cloak their schemes.” The Bureau had recorded a staggering $9.3 billion in losses to crypto-related fraud, scams and extortion. The FBI is committed to apprehending any individual who employs deceitful tactics and illusionary business models to steal from trusted investors.

Amalgam ran from January 2021 through November 2022, before shutting down, causing significant financial losses to investors and lenders. The case highlights ongoing regulatory scrutiny and legal actions against fraudulent activities in the crypto sector.