#AltcoinBreakout

Over 40 investors defrauded in $900K crypto scam run by ex-rugby player.

The U.S. Department of Justice has sentenced a former rugby player to 30 months in prison for defrauding investors out of $900,000 in a crypto mining Ponzi scheme.

Shane Donovan Moore, a 37-year-old semi-professional rugby player from Seattle, operated a fraudulent company called Quantum Donovan LLC between January 2021 and October 2022, a July 17 DOJ statement alleged.

Moore used his ties within the rugby community to build trust and recruit victims across several states, including Washington, Utah, Oregon, Connecticut, and New Jersey.

According to federal prosecutors, Moore told investors their money would be used to purchase and operate cryptocurrency mining equipment. He promised daily returns of 1% and claimed the operation would generate consistent profits through the work of mining rigs.

In reality, Moore never purchased any mining equipment. Instead, he diverted investor funds into personal bank accounts to finance a luxury lifestyle. Authorities said he used the money to pay for expensive apartments, electronics, designer clothing, luggage, and travel.

As with most Ponzi schemes, Moore used a portion of the funds to purchase cryptocurrency and issue small payouts to early investors to maintain his facade and keep his operations running long enough to lure new victims.$WIF