Jeremy Jordan-Jones faces multiple federal charges after allegedly defrauding investors with a sham blockchain firm and siphoning funds to fund personal luxuries.
Amalgam Blockchain Founder Indicted for Fraud
U.S. federal prosecutors have formally charged Jeremy Jordan-Jones, the self-described founder of purported blockchain startup Amalgam, for his alleged role in a multi-million-dollar fraud scheme. The U.S. Department of Justice (DOJ) announced on May 21 that Jordan-Jones had been arrested and indicted on several counts, including wire fraud, securities fraud, making false statements to a bank, and aggravated identity theft.
A Startup Built on False Claims
According to prosecutors, Jordan-Jones operated Amalgam from January 2021 to November 2022, presenting it as a promising blockchain venture positioned for market leadership. Manhattan U.S. Attorney Jay Clayton stated Jordan-Jones “touted his company as a groundbreaking blockchain startup, backed by high-profile partnerships,” but in truth, the firm “was a sham, and investors’ funds were siphoned off to bankroll his lavish lifestyle.”
The indictment details how Jordan-Jones falsely claimed Amalgam had secured lucrative deals with major-league sports franchises and prominent payment platforms. These fictitious partnerships, combined with misleading statements about the company’s financial health, reportedly helped him convince investors to part with over $1 million.
Misuse of Investor Funds
Prosecutors allege that Jordan-Jones raised funds by assuring investors their capital would be allocated toward listing Amalgam’s cryptocurrency token and covering operational costs, including hardware and software. Contrary to these assurances, the funds were allegedly redirected for personal expenses.
Adding to the charges, Jordan-Jones reportedly submitted falsified financial documents to a financial institution in an attempt to obtain a corporate credit card. One such document falsely asserted that Amalgam maintained a bank balance exceeding $18 million, while the actual account had been closed since late 2021 and held no funds.
Potential Penalties and Asset Forfeiture
If convicted, Jordan-Jones faces severe legal consequences. Wire and securities fraud charges each carry potential sentences of up to 20 years in prison per count, while making false statements to a bank could result in up to 30 years. The aggravated identity theft charge includes a mandatory minimum of two years.
Authorities have also signaled their intent to pursue the forfeiture of assets and property connected to the alleged fraud, including substitute assets if necessary.
Broader Crackdown on Crypto-Related Crime
The case arrives amid heightened regulatory scrutiny of the cryptocurrency sector. The DOJ noted that fraudulent schemes often disguise themselves with the promise of cutting-edge technology. A recent FBI report highlighted that crypto-related fraud and extortion cost victims over $9.3 billion last year.
This latest enforcement action follows broader legislative movement in the sector, including the U.S. Senate’s advancement of the GENIUS Act, a bill designed to establish regulatory oversight for stablecoins.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.