Crypto Ponzi Scheme Mastermind Sentenced to 8 Years for $40M Fraud

Dwayne Golden, a 57-year-old man, has been sentenced to nearly eight years in prison for his role in a massive crypto Ponzi scheme. The scheme, which operated through three digital asset firms—EmpowerCoin, ECoinPlus, and Jet-Coin—defrauded investors out of over $40 million. Golden was convicted of wire fraud and money laundering, with the Department of Justice (DOJ) announcing that he and his partners promised guaranteed returns from crypto trading that never materialized. Instead, the funds were used to repay earlier investors or to line the conspirators’ pockets, which are classic hallmarks of a Ponzi scheme.

The companies involved in the scheme folded shortly after collecting investor deposits, leaving victims with significant financial losses. The scam operated between April and August 2017, during which Golden, along with Gregory Aggesen and Marquis Egerton, falsely marketed their firms as international crypto traders. After the companies collapsed, Golden and his co-defendants attempted to obstruct both a Federal Trade Commission probe and a federal grand jury investigation by destroying evidence and providing false information.

United States Attorney Joseph Nocella described the scheme as an exploitation of investor excitement over new technology, stating that Golden and his co-defendants offered no legitimate services and that none of the companies engaged in any actual trading in cryptocurrency as they claimed. Golden was also ordered to forfeit approximately $2.46 million. Co-defendant William White received a 30-month sentence, while Aggesen and Egerton are awaiting sentencing.

FBI Assistant Director Christopher Raia called the conspiracy “an elaborate scheme rooted in deceit and false promises to swindle investors.” He stressed that Golden’s actions showed “an utter disregard for integrity” and praised the sentence as a warning to other would-be scammers. The DOJ asked investors who suffered losses from the scheme to submit restitution claims through the FBI’s dedicated portal.

This case highlights the growing concern over crypto-related scams and the need for increased vigilance among investors. The elaborate nature of the scheme and the significant financial losses incurred by victims underscore the importance of thorough due diligence and caution when investing in digital assets. The sentencing of Golden serves as a stark reminder of the consequences of engaging in fraudulent activities and the commitment of law enforcement agencies to bring such perpetrators to justice.