Oklahoma man pleads guilty to wire fraud conspiracy charges related to $9.4 million crypto scam
Quick Take An Oklahoma man pleaded guilty to operating a fraudulent crypto investment firm that raked in $9.4 million by promising returns of 1-2% per day, according to the DOJ. He faces a maximum sentence of five years in prison for one count of conspiracy to commit wire fraud.
Travis Ford, a 35-year-old Oklahoma man, pleaded guilty to one count of conspiracy to commit wire fraud related to his role in operating a "fraudulent" cryptocurrency investment firm, according to a release from the U.S. Department of Justice on Friday.
Ford helmed Wolf Capital Crypto Trading LLC, or Wolf Capital, as its co-founder, CEO and head trader. He solicited individuals to invest millions of dollars in the firm through promotions, social media posts and its website between January and August of 2023, according to the DOJ.
Ford allegedly stated he could net returns of around 1-2% per day, or 547% per year, and ultimately raised $9.4 million from around 2,800 investors.
The DOJ argued Ford invoked false promises to entice individuals to invest in the firm, then used investor funds "to benefit himself and his co-conspirators to the detriment of investors."
While Ford's charge shows that Ponzi schemes built around promises of riches are still prevalent in the crypto industry, bad actors are increasingly ditching them in favor of " pig butchering ." Such schemes involve fraudsters scamming victims out of large sums of money after gaining their trust or feigning romantic interest, The Block previously reported.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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