based on materials from the site - By Todayq News
Brooklyn court sends Dwayne Golden to prison for $40 million pyramid scheme
Dwayne Golden, who pleaded guilty last September to conspiracy to commit electronic payments and money laundering, was sentenced by William F. Kuntz II in federal court in Brooklyn.
The Department of Justice, Dwayne, along with his co-defendants Gregory Aggesen, Marquis Eggerton, and William White, supported three fraudulent digital asset companies: EmpowerCoin, ECoinPlus, and Jet-Coin.
It is worth noting that these companies promised investors guaranteed profits through overseas cryptocurrency trading, however, it operated as a financial pyramid, using funds from new investors to pay old investors or enrich themselves.
Information available in court documents indicates that the scheme operated from April to August 2017, after which the operators disappeared with the money, leaving investors with losses.
It is said that to evade federal investments, the operators of these schemes attempted to destroy evidence and provided false information to authorities to mislead them.
The sofa and his co-defendant embezzled a million dollars in the financial pyramid
Dwayne Golden, a 57-year-old resident of Pennsylvania, was sentenced to 97 months in prison for organizing a $40 million cryptocurrency financial pyramid.
His co-defendant William White received a 30-month sentence, while Aggesen and Eggerton await sentencing.
Notably, investors who lost money in this financial pyramid can file claims for restitution through the FBI portal.
According to a statement from the U.S. Attorney's Office EDNY on June 28, 2025, U.S. Attorney Nochalla stated: "Dwayne Golden and his accomplices exploited investor interest in new exciting technologies to implement a fraudulent scheme that is as old as time itself and made millions of dollars for themselves in the process."
— U.S. Attorney EDNY (@EDNYnews) Cryptocurrency Ponzi schemes have peaked
In recent years, Ponzi schemes have been developing at a faster pace, taking advantage of the hype and complexity of digital assets. In most cases, these scams promise high, often guaranteed returns to lure investors, using funds from new investors to pay early ones.
The volatility of cryptocurrency and the potential for high returns attract investors, making them vulnerable to schemes promising quick profits. The decentralized and pseudonymous nature of cryptocurrency, combined with limited regulatory oversight in many jurisdictions, creates fertile ground for scammers.
The rise in the number of crypto Ponzi schemes reflects the growing popularity of digital assets, with revenue in the cryptocurrency market expected to reach $343.5 million this year.
However, the lack of regulation and the complexity of cryptocurrency make it a prime target for scammers. The rapidly increasing level of fraud and scams in the digital asset market raises concerns about the safety of users and traders.
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