3 Minutes
Crypto Mining Scam Leads to Federal Prison Sentence
A former semi-professional rugby player from Seattle, Shane Donovan Moore, has been sentenced to 30 months in federal prison after orchestrating a crypto mining Ponzi scheme that defrauded over 40 investors out of nearly $900,000. This recent case, announced by the U.S. Department of Justice (DOJ) on July 17, underscores the growing risks within the cryptocurrency investment landscape.
Building Trust Through the Rugby Community
Between January 2021 and October 2022, Moore operated Quantum Donovan LLC, a company he claimed was focused on cryptocurrency mining. Leveraging his reputation and connections in the rugby community, Moore solicited investments from friends, teammates, and acquaintances across several states, including Washington, Utah, Oregon, Connecticut, and New Jersey. Victims were lured by the promise of daily 1% returns and the purported purchase and operation of crypto mining equipment—a claim that fueled optimism about significant returns from digital asset mining.
Fraudulent Operations Behind the Facade
Federal prosecutors revealed that Moore never acquired any mining equipment as promised. Instead, he siphoned investor funds into personal accounts to sustain a lavish lifestyle, which included renting high-end apartments, acquiring luxury electronics, designer brands, and funding frequent travel. Like many Ponzi schemes, Moore used a portion of the incoming funds to pay small returns to early investors, maintaining the deceptive appearance of a legitimate, profit-generating crypto venture and attracting new victims.
Larger Trends in Crypto Investment Scams
In total, more than 40 individuals lost money, with collective losses exceeding $387,000 on record—many of whom placed trust in Moore based on personal ties within the rugby community. U.S. District Judge Tana Lin ordered Moore to spend 30 months in federal prison and to pay restitution to victims; however, the full scope of financial recovery remains undisclosed.
This case is part of a broader trend in cryptocurrency fraud. For example, in June, Dwayne Golden, the mastermind of a $40 million crypto Ponzi scheme, received a 97-month sentence for running fraudulent platforms under the guise of legitimate crypto investment opportunities. Golden and his associates promised guaranteed profits from international crypto trading platforms such as EmpowerCoin, ECoinPlus, and Jet-Coin. They relied on new deposits to pay earlier investors and misappropriated the majority of funds, even going so far as to destroy evidence to obstruct authorities. The DOJ has since ordered the forfeiture of millions in assets linked to these crimes.
Crypto Scams on the Rise: Staying Alert
As digital currencies gain mainstream traction and cryptocurrency investments become more popular worldwide, fraudulent schemes are on the rise. The FBI’s Internet Crime Complaint Center reports that over half of all crypto-related financial losses in 2024 stemmed from investment scams. The case of Shane Donovan Moore serves as a stern warning to investors: always conduct thorough due diligence and remain vigilant when considering cryptocurrency mining or investment platforms. Maintaining strong security practices and verifying the legitimacy of crypto businesses can help safeguard against falling victim to similar frauds.
Source: crypto
Comments