Crypto Ponzi Scheme Mastermind Sentenced to 8 Years

Dwayne Golden, a resident of Harrisburg, Pennsylvania, has been sentenced to over eight years in federal prison for his involvement in a $40 million crypto Ponzi scheme. The sentence was handed down by Judge William F. Kuntz II in a Brooklyn federal court. Golden, who is 57 years old, pleaded guilty in September 2024 to charges of conspiracy to commit wire fraud and money laundering.

According to the prosecutor, Golden and his co-conspirators, Gregory Aggesen, Marquis Demacking Egerton, and William White, created and operated fraudulent investment platforms. These platforms, which included EmpowerCoin, ECoinPlus, and Jet-Coin, were active between April and August 2017. The websites promised investors fixed profits through overseas crypto trading. However, prosecutors revealed that none of the companies engaged in any real trading activity. Instead, the defendants used incoming investor funds to pay earlier investors or diverted the money for personal use, consistent with a Ponzi scheme.

FBI Assistant Director Raia noted that the platforms raised more than $40 million in total. After the schemes collapsed, the defendants attempted to hide their crimes by obstructing federal investigations. Between July 2017 and March 2022, Golden, Aggesen, and White tried to hinder both a Federal Trade Commission (FTC) inquiry and a federal grand jury investigation. Authorities said they destroyed key evidence and gave false and misleading statements to investigators.

William White was previously sentenced to 30 months in prison for his role in the scheme. Meanwhile, Aggesen and Egerton have pleaded guilty and are awaiting sentencing. As part of his sentence, Golden was also ordered to forfeit roughly $2.46 million in illegal gains. The court will decide on restitution to victims at a later date.

The U.S. Attorney’s Office encouraged victims of EmpowerCoin.com, ECoinPlus.com, or Jet-Coin.com to submit restitution claims through the FBI. “This office is committed to protecting investors and holding fraudsters accountable,” said U.S. Attorney Joseph Nocella. “We will continue to pursue justice for those harmed.”

This case highlights the growing concern over crypto-related scams. The Department of Justice (DOJ) has been actively pursuing justice for victims of such schemes. Earlier this month, five individuals admitted guilt in a separate case involving a $36.9 million cryptocurrency fraud scheme. The group tricked U.S. citizens and funneled the stolen funds to a crypto scam operation.

The DOJ's actions are part of a broader crackdown on transnational scams. The department has reported over $9.3 billion in crypto losses in 2024, with $5.8 billion linked directly to investment fraud. The DOJ filed a civil forfeiture complaint to seize $225.3 million in Tether’s USDT, marking the largest crypto seizure tied to a “pig butchering” investment scam. The action underscores the DOJ's commitment to combating financial crimes in the digital age.