The co-founder of Wolf Capital admitted guilt in connection with a $9.4 million Ponzi scheme. According to the United States Department of Justice, the scheme aimed to deceive investors by promising exorbitant returns of 547%.
Details of This Ponzi Scheme
Travis Ford, the 35-year-old co-founder and head trader of Wolf Capital, a leading crypto investment firm, has recently pleaded guilty to wire fraud conspiracy. This fraudulent scheme lured over 2,800 crypto investors into investing in the firm. He raised over $9 million in just 8 months, from January to August 2023.
Evidently, Ford’s fraudulent scheme involved the misuse and misappropriation of investor funds for self-benefit alongside his partner conspirators.
How Were Investors Lured Into This Crypto Scam?
The US Department of Justice reported on January 10, 2025, that Ford raised $9.4 million from investors. The 35yo falsely assured them of returns on investment of up to 547% per annum (equivalent to 1-2% returns each day).
Ford canvassed for funds via social media and online promotional activities alongside Wolf Capital’s official website. After being arraigned, Ford allegedly admitted that his promised return values were impossible to achieve constantly.
After being charged with one count of conspiracy for wire fraud, he faces a maximum penalty of five years. A federal district judge will preside over the case following the United States sentencing guidelines. However, the sentencing date has yet to be fixed.
In other news, PeckShieldAlert, a leading blockchain security firm, reported that in 2024, over $3 billion was lost to crypto hackers and scammers. This figure is an exponential increase compared to previous years. Another firm, Chainalysis, reported that hackers stole crypto worth approximately $2.2 billion in Q1 of 2024 alone in the past year.
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