Prosecutors have accused Jeremy Jordan-Jones, the self-designed founder of a now-abandoned crypto start-up called Amalgam, with fraud, claiming he was scamming investors in his “shame blockchain” of more than $ 1 million using the money to fund a lavish lifestyle.
According to prosecutors, Jordan-Jones painted Amalgam as a tech company that created blockchain-based sales places payment systems, which he claimed had had partnerships with millions of dollars with sports teams, including Golden State Warriors and a professional football team in England’s Premier League, as well as a large restaurant conglomer with more than 500 restaurants. None of these partnerships existed, prosecutors said. Jordan-Jones have also allegedly requested investments from investors by telling them that the money would be used to facilitate the list of Amalgam’s non-existent crypto token on a crypto exchange.
While allegedly spinning stories to investors-inclusive a venture capital company identified in a 2022 Forbes article such as Brown Venture Group-Sigers prosecutors that Jordan-Jones jumped their money on a luxurious lifestyle for themselves, including “hotels and restaurants in Miami,” car payments and designer clothing.
“Jordan-Jones, who capitalized about advertising around blockchain technology, committed a brave scheme to scam investors,” US lawyer Jay Clayton said in a press release on Tuesday. “He proclaimed his company as a groundbreaking blockchain start-up, supported by high-profile partnerships. In reality, Jordan-Jone’s company was a shame, and investors’ funds were siphoned to bank roll his lavish lifestyle to cut their schemes.”
In addition, prosecutors have accused Jordan-Jones of providing counterfeit documents to a financial institution he used to fraudulently get a company’s credit card that ran up a $ 350,000 balance before the bank closed his account.
Jordan-Jones are charged with a counting each of wire fraud, securities fraud, made false declarations to a financial institution and worsening identity theft prosecutor that has a total maximum sentence of 82 years in prison. The stricter identity theft charges a mandatory minimum penalty of two years.
