Crypto Ponzi Scheme Leader Sentenced to Nearly Eight Years in Prison

According to Cointelegraph, Dwayne Golden, 57, has been sentenced to 97 months in prison for his involvement in a significant crypto Ponzi scheme. A federal judge in Brooklyn delivered the sentence on Friday, following Golden's conviction for wire fraud and money laundering. The Department of Justice (DOJ) revealed that Golden orchestrated scams through three digital asset firms—EmpowerCoin, ECoinPlus, and Jet-Coin—defrauding investors of over $40 million. Federal prosecutors detailed how Golden and his associates promised investors guaranteed returns from crypto trading that never occurred. Instead, the funds were used to repay earlier investors or were misappropriated by the conspirators, a classic Ponzi scheme tactic. The companies collapsed soon after collecting investor deposits, leaving victims with substantial financial losses. The fraudulent activities took place between April and August 2017, with Golden and his partners falsely promoting their firms as international crypto traders. Following the collapse of their companies, Golden and his co-defendants attempted to obstruct investigations by the Federal Trade Commission and a federal grand jury. Their efforts included destroying evidence and providing false information. United States Attorney Joseph Nocella described the scheme as an exploitation of investor enthusiasm for new technology, noting that the companies offered no legitimate services and conducted no actual cryptocurrency trading. In addition to his prison sentence, Golden was ordered to forfeit approximately $2.46 million. Co-defendant William White received a 30-month sentence, while Gregory Aggesen and Marquis Egerton, also known as Mardy Eger, are awaiting sentencing. FBI Assistant Director Christopher Raia condemned the conspiracy as an elaborate scheme rooted in deceit and false promises, emphasizing Golden's disregard for integrity. Raia praised the sentence as a deterrent to potential scammers. The DOJ has urged investors who suffered losses from the scheme to submit restitution claims through the FBI's dedicated portal. In a related incident earlier this month, five men pleaded guilty to orchestrating a $36.9 million crypto scam that defrauded Americans and funneled funds to a crypto scam center in Cambodia. The defendants targeted victims via social media, messaging apps, and dating platforms, enticing them with false promises of profitable crypto investments. So far in 2025, over $2.1 billion has been stolen in crypto-related incidents, with most losses attributed to wallet compromises and key mismanagement, according to CertiK co-founder Ronghui Gu.