Rugby Player Sentenced 30 Months For 900K Crypto Ponzi Scheme

A former semi-professional rugby player from Seattle has been sentenced to 30 months in federal prison for orchestrating a $900,000 cryptocurrency Ponzi scheme that defrauded over 40 investors across the U.S. Shane Donovan Moore, 37, was sentenced after pleading guilty to wire fraud. The sentencing followed an investigation by the FBI into Moore’s company, Quantum Donovan LLC, which he claimed was a legitimate cryptocurrency mining operation. Prosecutors revealed that the company was a facade, and no mining equipment was ever purchased.

Between January 2021 and October 2022, Moore pitched his venture to investors in various states, many of whom were his friends, former teammates, and acquaintances from his rugby career. He promised investors a daily return of 1% from the supposed profits of cryptocurrency mining machines. However, the funds were used for personal expenses, including travel, luxury goods, electronics, clothing, and a deposit on a high-end apartment. Some of the money was also used to buy cryptocurrency to make small payouts to early investors, creating the illusion of a legitimate operation.

Acting U.S. Attorney Teal Luthy Miller stated, “Mr. Moore used the newness of cryptocurrency to commit an age-old fraud—a Ponzi scheme. He left a path of damaged relationships in his wake.” The judge acknowledged Moore’s difficult personal history but emphasized the real harm caused by his actions. The judge said Moore’s actions inflicted not only financial losses but also “emotional and psychological damage” on his victims. Moore will serve 30 months in prison, followed by three years of supervised release. A restitution order is expected to follow.

According to prosecutors, while Moore raised more than $900,000, the actual loss to investors stood at just over $387,000 after some early payments. Some early investors, convinced by Moore’s story, encouraged their friends and family to get involved, exacerbating the fallout when the truth surfaced. The case highlights the risks associated with cryptocurrency investments, particularly when they are promoted by individuals exploiting personal relationships and trust within tight-knit communities.

This incident underscores the growing concern over cryptocurrency-related fraud. As cryptocurrencies continue to gain mainstream acceptance, the potential for fraudulent activities also increases. The FBI’s Internet Crime Complaint Center reported a significant rise in crypto-related losses, with over $9.3 billion in losses recorded in 2024, a 66% jump from the previous year. The Bureau also noted that more than 149,000 complaints were filed, with over 50% of total crypto losses linked to investment scams. The fraud wave has continued into 2025, with Chainalysis’ Mid-Year Crypto Crime Report showing $2.17 billion in crypto already stolen, surpassing all of 2024.

The FBI’s efforts to combat crypto fraud include notifying victims and helping prevent further losses. In 2024, the Bureau notified over 4,300 victims, helping prevent an estimated $285 million in further losses. The Bureau also referred 42 individuals to victim specialists for suicide intervention related to crypto fraud, highlighting the severe emotional and psychological impact of such scams. Experts emphasize the importance of user behavior in preventing scams, urging individuals to adopt a mindset of “deliberate doubt” and verify requests carefully to avoid falling victim to fraudulent activities.