In order to check the fraud and forgery, a law firm working in the interest of cryptocurrency investors, Silver Miller has filed a lawsuit against investor Jeremy Spence – who according to the Miller is running a Ponzi scheme and defrauding crypto investors. According to the details revealed by the press release, Spence was alleged to have attracted a large number of crypto investors claiming that he runs Coin Signals organizations and is counted among prominent crypto traders. Spence, according to the release, has contacted many investors via discord and telegram convincing them to invest in the cryptocurrencies through his organization. Spence allegedly promised a lucrative return to his clients by asking them to invest in the various hedge funds that his company was managing. Contrary to Spence’s claims, Silver Miller alleged that Spence is not managing the hedge funds rather he is running a Ponzi scheme and cheating on the investors by making false claims. The lawsuit filed calls for a monetary penalty against Spence and to rescind the investments made in Coin Signals funds.
Scale of alleged fraud
Spence is allegedly able to accumulate large sums of money through his scheme as the Coin Signals claims to have assets worth more than $5 million at its peak point. It is important to note that Silver Miller firm has also sued AT&T in the past over the Sim-Swap fraud related to the cryptocurrency. The law firm claims to be protecting the interest of investors and working for the well-being of customers in the crypto industry by taking up cases not only involving crypto frauds but also relating to discrepancies on trading platforms and illegal activities.
In addition to Spence, Silver Miller has also filed a lawsuit against BitConnect which is also alleged to be running a Ponzi scheme, though the company has already collapsed this year. It is also fighting the case against Kraken and Coinbase crypto exchanges besides suing Monkey Capital and Tezos for promoting their projects on initial coin offering even before they became functional in the market.
Crypto Fraud and Customer Trust
Cryptocurrency industry is severely affected by frauds, and many experts agree that in order to encourage widespread adoption of digital assets, the trust factor needs to be enhanced. As per the report of CryptoGlobe earlier this year, British authorities estimated that victims of cryptocurrency fraud had lost more than over $2.25 million by falling prey to unscrupulous elements posing as cryptocurrency investors. In order to stay safe, authorities suggest that due diligence is required on the part of investors before they start investing in any cryptocurrency scheme. The investors shouldn’t assume investment even if the websites of investing companies look professional and the person who is suggesting the investment is a well-known name in the industry. Comprehensive and thorough research on the part of investors can go a long way in protecting their interest and investment from the fraudsters. Further, authorities suggest that investors shouldn’t rush through the decision to invest, as any genuine organization will never put pressure on people for certain specific type of investment in a particular product or service.