Crypto Startup Founder Charged with $1M Fraud Scheme

Jeremy Jordan-Jones, founder of the now-defunct crypto startup Amalgam, has been charged with multiple counts of fraud for allegedly defrauding investors of over $1 million. Federal prosecutors claim Jordan-Jones falsely promoted Amalgam as a cutting-edge blockchain company, claiming partnerships with major sports teams like the Golden State Warriors and a Premier League soccer club, as well as a large restaurant group. Authorities say none of these partnerships existed.

According to the indictment, Jordan-Jones told investors their funds would support the listing of a crypto token that didn’t exist. One notable investor, reportedly Brown Venture Group, was allegedly misled by these false promises. Instead of funding development, the money was used for personal luxuries, including luxury hotels and restaurants in Miami, high-end fashion, and car payments.

U.S. Attorney Jay Clayton described the scheme as a blatant attempt to exploit blockchain hype. He emphasized that such fraudulent use of emerging technologies to deceive investors will be aggressively pursued by law enforcement.

In addition to the investment fraud, Jordan-Jones is accused of using falsified documents to acquire a corporate credit card, ultimately racking up a $350,000 bill before the bank shut down the account.

He now faces charges of wire fraud, securities fraud, making false statements to a financial institution, and aggravated identity theft. If convicted on all counts, Jordan-Jones could face up to 82 years in prison, including a mandatory two-year minimum sentence for identity theft.

This case highlights the risks investors face in the crypto space, where the allure of new technology can often mask fraudulent intent. Authorities urge the public to perform due diligence before investing in blockchain startups or crypto-related ventures.