Rugby Player Sentenced 30 Months for $900,000 Crypto Fraud

Shane Donovan Moore, a former semi-professional rugby player from Seattle, has been sentenced to 30 months in federal prison for orchestrating a fraudulent cryptocurrency mining scheme. Moore, 37, defrauded over 40 investors out of nearly $900,000 through his company, Quantum Donovan LLC, which he falsely claimed was a legitimate cryptocurrency mining operation. The scheme promised investors daily returns of 1%, supposedly based on the output of high-powered mining computers that Moore never acquired. Instead, he used the investor funds to support his lavish lifestyle, including luxury travel, designer luggage, electronics, and rent for a high-end apartment. Additionally, he paid some of the funds to earlier investors to maintain the illusion of a profitable venture and recruit additional victims.

Moore targeted fellow rugby players across several states, exploiting personal trust to recruit victims who lost more than $387,000 in total. The emotional and psychological damage caused to the victims was explicitly mentioned by U.S. District Judge Tana Lin during the sentencing. The judge highlighted that these scams run on false hope and high returns, leaving a path of damaged relationships in their wake. Moore's actions underscore the importance of vigilance and due diligence in the crypto investment space, as well as the need for continued enforcement efforts to protect potential victims.

From January 2021 to October 2022, Moore promised investors daily returns of 1%, supposedly based on the output of high-powered mining computers. But according to court filings, he mixed investor funds with his personal bank accounts, spending the money on luxury travel, designer luggage, electronics, and rent for a high-end apartment. Assistant U.S. Attorney Brian Wynne told the court that Moore burned through hundreds of thousands of dollars, causing direct losses of more than $387,000 to investors. Many of those investors were people Moore had met through rugby, and they in turn brought in friends and family from across Washington, Oregon, Utah, Connecticut, and New Jersey. As the money dried up and payouts stopped, accusations of fraud quickly followed.

Moore’s case is just one of many crypto-related frauds landing in U.S. courts this year. Regulators have been cracking down on a wave of scams—from fraudsters promising AI-powered mining profits to promoters who were sentenced in January for their roles in similar schemes. The use of cryptocurrency as a tool for fraud has become increasingly common, with scammers leveraging the newness and complexity of the technology to deceive investors. Moore's actions underscore the importance of vigilance and due diligence in the crypto investment space, as well as the need for continued enforcement efforts to protect potential victims.