Crypto Ponzi Scheme Mastermind Sentenced to 97 Months

Dwayne Golden, a 57-year-old man, has been sentenced to 97 months in prison for his involvement in a large-scale crypto Ponzi scheme. The scheme, which operated through three digital asset firms—EmpowerCoin, ECoinPlus, and Jet-Coin—defrauded investors out of over $40 million. The Department of Justice (DOJ) announced that Golden was convicted of wire fraud and money laundering.

Federal prosecutors revealed that Golden and his partners promised guaranteed returns from crypto trading, which never materialized. Instead, the funds were used to repay earlier investors or to enrich the conspirators, a classic characteristic of a Ponzi scheme. The companies collapsed shortly after collecting investor deposits, leaving victims with significant financial losses.

The scam was active between April and August 2017. Golden, along with Gregory Aggesen and Marquis Egerton, falsely marketed their firms as international crypto traders. After the companies folded, 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 emphasized that Golden’s actions showed “an utter disregard for integrity” and praised the sentence as a warning to other would-be scammers. The DOJ has asked investors who suffered losses from the scheme to submit restitution claims through the FBI’s dedicated portal.

In a similar incident, five men pleaded guilty to orchestrating a $36.9 million crypto scam that defrauded Americans and funneled funds to a crypto scam center in Cambodia. The defendants targeted victims through social media, messaging apps, and dating platforms, luring them with false promises of profitable crypto investments. This incident highlights the ongoing threat of crypto-related scams and the need for vigilance among investors.