$40M Crypto Ponzi Scheme Leads to Jail Time
$40M Crypto Ponzi Scheme Results in 97-Month Sentence
Dwayne Golden, 57, has been sentenced to 97 months in prison for orchestrating a $40 million cryptocurrency Ponzi scheme. The scheme, which operated from April to August 2017, involved three companies: EmpowerCoin, ECoinPlus, and Jet-Coin. Golden pleaded guilty in September 2024 to conspiracy to commit wire fraud and money laundering. Sentencing took place on June 27, 2025, in a Brooklyn federal court.
The scheme lured investors with promises of high returns through overseas cryptocurrency trading. Instead, new investor funds were used to pay off earlier investors, a classic Ponzi scheme structure. Once the influx of new money stopped, the companies quickly collapsed, leaving investors with significant losses. In addition to the prison sentence, Golden was ordered to forfeit $2.46 million, with restitution amounts to be determined.
Co-Conspirators and Ongoing Investigations
Golden collaborated with Gregory Aggesen, Marquis Egerton, and William White. Egerton and Aggesen are awaiting sentencing, while White received a 30-month sentence. The group actively misled investors about the legitimacy of their crypto trading platforms and even obstructed two federal investigations (a Federal Trade Commission investigation and a grand jury investigation) by providing false statements.
The FBI is encouraging victims to file restitution claims through a dedicated portal. The U.S. Department of Justice (DOJ) is using advanced blockchain tracking to combat crypto-related fraud, highlighting its commitment to pursuing these cases aggressively. This case is part of a broader effort targeting crypto scams, including those involving North Korean actors and a $500 million money laundering scheme orchestrated by a Russian individual. The Commodity Futures Trading Commission also assisted in the investigation.
U.S. Attorney Nocella emphasized that Golden exploited public interest in digital assets to perpetrate a traditional fraud, underlining the importance of investor caution in the cryptocurrency market. This case underscores the risks of investing in unregulated crypto projects, especially those promising unrealistic returns. High-yield, low-risk investments are often red flags, and investors should always carefully vet platforms to protect themselves from fraudulent schemes.
Codeum provides blockchain security and development services to mitigate risks like these. Our services include smart contract audits, KYC verification, custom smart contract and decentralized application (DApp) development, tokenomics and security consultation, and partnerships with launchpads and crypto agencies.