Silver Miller, the leading crypto-focused law firm based in the United States, filed a lawsuit against Jeremy Spence, a self-claimed crypto hedge fund manager who orchestrated a fraudulent crypto fund Ponzi scheme. The law firm published documents, which were filed on Wednesday, Dec. 26th 2018, on their website.
The firm, which commenced the lawsuit, on behalf of multiple investors, who were hit by the Ponzi scheme, filed the case at the Court of the Southern District of New York, alleging Jeremy Spence, along with some accomplices, orchestrating a fake entity called “Coin Signals.”
Spence, who represented himself to investors as a successful cryptocurrency trader, is alleged to offer investors “lucrative returns,” in return for their investments. The returns were claimed to be generated from a series of crypto hedge funds managed by Spence.
The hedge funds comprised an “Alts Fund,” a “Long Term Fund,” a “managed entry” to an Initial Coin Offering (ICO) (named “Evermarkets ICO”), and “Coin Signals Mex (CSM) Fund.” The CSM is the prime focus of the filed lawsuit, which the law firm claims is not a US registered hedge fund.
The lawsuit contends that the promised “lucrative returns,” were not actually profits from investments, but were rather just reallocations of older investors’ assets to new investors’ assets” in a classic fraudulent scheme, duping investors hard earned money. The filed lawsuit, also claims that Spence fended off questions from his investors with excuses such as hacks and family emergencies to “stall for time and plot his next move.”
The CSM Fund holds as much as 1,300 Bitcoin (BTC) deposited by the investors, which were valued at the time at over $10 million. And, when in late 2018, the CSM fund scheme started to fall apart, Spence allegedly prevented investors from withdrawing assets.