A New York man has been charged with orchestrating a fraudulent blockchain venture that duped investors out of over $1 million, according to an announcement by Jay Clayton, United States Attorney for the Southern District of New York, and the FBI. Jeremy Jordan-Jones, who fancied himself as the "founder" of a technology company named Amalgam Capital Ventures, was arrested and is now facing multiple charges, including wire fraud, securities fraud, making false statements to a bank, and aggravated identity theft as reported by the U.S. Department of Justice.
Jordan-Jones is accused of exploiting investor interest in blockchain technology and allegedly engaging in a scheme to defraud them by making grand claims about his startup's capabilities and partnerships which turned out to be completely fabricated, drawing attention to the need for due diligence in the rapidly evolving tech landscape which can sometimes be a black box to the uninitiated, an area ripe for exploitation by those with larcenous intents. U.S. Attorney Jay Clayton remarked that Jordan-Jones's operation was "a sham," using it as a stern warning to other potential fraudsters and investors that rigorous oversight is ever-present.
The fraud came to light when it was revealed that Amalgam had neither the functioning software products nor the high-profile partnerships with major-league sports teams and well-known payment platforms as Jordan-Jones claimed the indictment alleges. Instead of funding business operations, investor money was funneled into Jordan-Jones's personal expenses, supporting a lavish lifestyle that had little to do with software development or cryptocurrency innovation as he had previously stated to his backers.
The indictment unsealed in Manhattan federal court outlines the lengths to which Jordan-Jones went to defraud his investors, including falsifying financial documents submitted to a bank to obtain funds, and falsely reassuring investors about the destination of their investment, promises of high returns and the viability of the business were nothing but smoke and mirrors designed to bolster his own financial standing at the devastating cost of those who trusted in his vision for a blockchain future. If convicted, Jordan-Jones could face up to 70 years in prison. Trials loom as the curtain falls on yet another saga of fraudulent ambition, a cautionary tale in the age of digital entrepreneurship and speculation.
Praises were extended by Mr. Clayton to the FBI for their work on the case and the U.S. Securities and Exchange Commission for their involvement in a related civil action, with the prosecution being led by the Office’s Securities and Commodities Task Force spearheaded by Assistant U.S. Attorney Marguerite B. Colson. Investors are reminded that the charges against Jordan-Jones are accusations and that he is presumed innocent unless proven guilty by the court of law.
