Prosecutors have accused Jeremy Jordan-Jones, the self-taught founder of a now missing cryptography startup called Amalgam, with fraud, claiming that he scammed investors in his “Sham Blockchain” of more than $ 1 million, using money to finance a luxurious lifestyle.
According to prosecutors, Jordan-Jones painted Amalgam as a technology company that created blockchain-based point of sale systems, which according to him had multimillion-dollar multimillion-dollar associations with sports equipment, including the Golden State Warriors and a professional football team in the Premier League of England, as well as a large conglomerate restaurant with more than 500 restaurants. None of these associations existed, prosecutors said. Jordan-Jones also supposedly requested investments of possible investors telling them that money would be used to facilitate the list of the non-existent cryptographic token of Amalgam in an exchange of cryptography.
Although it allegedly turned stories for investors, including a risk capital company, identified in a 2022 Forbes article such as Brown Venture Group, prosecutors say Jordan-Jones was blowing their money in a luxurious lifestyle for itself, including “hotels and restaurants in Miami”, cars payments and designer clothing.
“Jordan-Jones, capitalizing on advertising around Blockchain technology, perpetrated a shameless scheme to disappoint investors,” said US prosecutor Jay Clayton in an announcement from the press on Tuesday. “He addressed his company as an innovative blockchain startup, backed by high profile associations. Actually, the Jordan-Jones company was a farce, and investors’ funds were diverted to obtain their luxurious lifestyle. This should be an example for possible financial frauds that women and men in the southern district and the FBI are seeing the public investment and the wintering public. They often use the new fraud of the frauds of the promise of the new ones.
In addition, prosecutors have accused Jordan-Jones of providing counterfeit documents to a financial institution, which he used to fraudulently obtain a corporate credit card, with a balance of $ 350,000 before the bank closed its account.
Jordan-Jones has been accused of a wiring fraud, fraud of values, making false statements to a financial institution and theft of aggravated identity, positions that carry a maximum combined sentence of 82 years in prison. The position of aggravated identity theft entails a minimum mandatory sentence of two years.
