- lyEx-rugby player Shane Moore jailed for $900K fake crypto mining scheme.
- Moore promised daily profits but ran Ponzi scheme, spending cash on luxuries.
- FBI warns crypto scams rising; over half losses linked to fraud.
A former semi-pro rugby player will spend time in prison for cheating investors through a fake crypto scheme. Shane Donovan Moore, who played rugby in Seattle, was sentenced to two and a half years in a U.S. federal prison. He cheated over 40 investors out of 900,000 dollars. This was announced by the Department of Justice on Thursday.
Moore Promised Daily Mining Profits, Ran Ponzi with Friends’ Money
From January 2021 to October 2022, Moore managed a company named Quantum Donovan LLC. He informed individuals that the firm would purchase and operate cryptocurrency mining systems. Additionally, he said that investors were going to get 1 percent of their money daily through mining profits. He was trusted by many and many believed him with their money.
But Moore never purchased any mining equipment. He instead paid old investors using the money of new investors. This is termed a Ponzi scheme. The rest of the money was deposited in his accounts. He used it to live a luxurious life, to travel, to buy fancy clothes, and even to rent an apartment.
U.S. District Judge Tana Lin said during his sentencing hearing that the activities of Moore had a devastating effect on people. According to the judge, Moore not only damaged his victims financially but also emotionally. Even Moore had some of his friends and teammates who were in the rugby community among the victims. They believed in him and got their families to invest as well.
Teal Luthy Miller, the current acting U.S. Attorney, clarified the wrongdoing of Moore. According to Miller, Moore exploited the fact that crypto is not only new but also confusing to most people. He covered an old con game with this—to offer huge profits with other people’s funds. Miller described that the fraud committed by Moore had left broken friendships and destroyed trust.
FBI Warns: Over Half of 2024 Crypto Losses Tied to Scams
Assistant U.S. Attorney Brian Wynne also told the court how Moore spent the stolen money. Instead of buying mining computers, Moore spent the money on travel, luggage, clothes, electronics, and a luxury apartment deposit. Wynne requested the judge to sentence Moore to serve three years in prison so that the judge can show how serious his actions were.
Moore defrauded many states. He raised capital in Utah, Oregon, Connecticut, New Jersey and Washington. A lot of his victims were introduced to him via rugby. They believed that he was reliable. Unfortunately, they ended up losing a lot of money, and they also had to contend with furious friends and relatives when the truth was revealed.
The case of Moore is not the only crypto scam that has been in the news in the recent past. Dwayne Golden, another fraudster, received 97 months in prison last month on a $40 million Ponzi scheme. Golden and his group operated bogus crypto sites and offered bogus returns. They did this by spending the cash on repaying the older investors and maintaining the fraud. Golden even attempted to obstruct investigators through lies and the destruction of evidence.
The crypto world is becoming increasingly fraudulent. According to the Internet Crime Complaint Center of the FBI, crypto scams such as the one in question accounted for over 50% of all crypto losses in 2024. This indicates that the more individuals invest in crypto, the more scammers find a new opportunity to deceive them.
Ultimately, the prison term of Moore demonstrates that even famous individuals can betray trust to get an easy buck. The authorities advise investors to ensure that they know where their money is heading and to beware of too good to be true promises.
