US Prosecutor’s Office presents charges against the founder of false blockchain technology company

Known as Amalgam, The company promoted a business model based on the marketing of solutions for payments with cryptocurrencies, as well as the launch of an alleged token backed by institutional alliances. Raised USD $ 1 million under false investment promises.

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• Jeremy Jordan-Jones, founder of the disappeared Amalgam, Face charges for fraud and identity theft.
  
• According to the Prosecutor’s Office, he used false alliances and documents to attract investors and obtain corporate credit.
  
• He could face up to 82 years in prison for the accused crimes.

The founder of Amalgam, An alleged emerging company that was offered at the time as a cryptocurrency technological company, was accused by US prosecutors to orchestrate an elaborate fraud scheme, which allowed it to appropriate more than USD $ 1 million by investors.

False presentation of an innovative startup

According to judicial documents reviewed by COINDESK, Jeremy Jordan-Jones promoted Amalgam as a technology company focused on developing payment systems with points of sale based on Blockchain. He affirmed that his company maintained multimillionaire agreements with renowned sports entities such as the Golden State Warriors and a team of the Premier League English, as well as with a chain of more than 500 restaurants.

However, these alliances did not exist. The Prosecutor’s Office argues that they were completely fictitious, used as a bait to attract investments and give credibility to their company.

In addition to the alleged alliances, Jordan-Jones requested funds from investors under the promise that they would be used to include the non -existent token of Amalgam In a cryptocurrency exchange. Among those affected is a risk capital firm, identified by Forbes In 2022 as Brown Venture Group.

Actually, money was diverted to personal purposes. Jordan-Jones would have spent capital in luxury hotels and restaurants in Miami, cars, designer clothes and other luxuries. “He presented his company as a Startup Blockchain innovative, backed by high-profile partners. Actually, the Jordan-Jones company was a farce”Federal prosecutor Jay Clayton declared.

The prosecutor added that this case should serve as a warning for potential scammers, who seek to take advantage of the enthusiasm for new technologies to cover up illegal activities.

The positions presented by the Prosecutor’s Office

Prosecutors also accuse Jordan-Jones of providing counterfeit documents to a financial entity. With these papers, he would have obtained a corporate credit card with which he accumulated a debt of USD $ 350,000 before the bank identified the fraud and closed the account.

Among the positions presented are electronic fraud, values ​​fraud, false declaration to a financial institution and aggravated identity theft.

The maximum penalty combined by these crimes amounts to 82 years in prison, including a minimum mandatory penalty of two years only for the position of identity theft.

This case highlights the vulnerability of some sectors of the crypto ecosystem against sophisticated scams. Although blockchain technology itself offers transparency and traceability mechanisms, its novelty and complexity still allow unscrupulous individuals to take advantage of the lack of technical knowledge among certain investors.

The story of Amalgam underlines the need for greater surveillance and education within the crypto community, as well as the implementation of clear regulations to prevent technological promises from being used as a facade for financial crimes.

Article written by a content editor. Edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain.

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