A New York federal court has sentenced 57-year-old Dwayne Golden to 97 months in prison for running a $40 million cryptocurrency Ponzi scheme. Golden, along with his partners, lured investors through fake crypto trading platforms—EmpowerCoin, ECoinPlus, and Jet-Coin—promising high returns from trading that never actually happened.

The U.S. Department of Justice confirmed that between April and August 2017, the scam attracted millions from unsuspecting investors. Instead of trading, the funds were used to pay earlier victims and enrich the fraudsters—typical of a Ponzi operation. Golden was convicted of wire fraud and money laundering, and ordered to forfeit $2.46 million.

Authorities revealed the companies collapsed soon after raising investor money. Golden and co-conspirators Gregory Aggesen and Marquis Egerton (aka Mardy Eger) tried to obstruct investigations by destroying evidence and lying to federal agents. A fourth individual, William White, has already been sentenced to 30 months. Aggesen and Egerton are still awaiting sentencing.

Prosecutors described the scheme as predatory, capitalizing on investor enthusiasm for emerging crypto technologies. “Golden and his co-defendants offered no legitimate services,” said U.S. Attorney Joseph Nocella. The FBI also issued a warning to future fraudsters, calling it a “conspiracy rooted in deceit and false promises.”

Victims are now encouraged to submit restitution claims through the FBI’s online portal.

This case echoes another recent crypto fraud, where five men pleaded guilty to a $36.9 million scam linked to a Cambodian operation. Using social media, dating apps, and messaging platforms, they targeted Americans with fake investment opportunities.

According to CertiK, over $2.1 billion has already been lost to crypto-related thefts in 2025, mostly from compromised wallets and poor key management.