Crypto Firm Co-Founder Admits to $9M Fraud Scheme
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A cryptocurrency firm co-founder has admitted to defrauding thousands of investors through false claims of high returns, raising over $9 million before his scheme unraveled.
Travis Ford, the co-founder and head trader at Wolf Capital, pleaded guilty to wire fraud conspiracy, according to a January 10 statement from the U.S. Department of Justice (DOJ).
Between January and August 2023, Ford convinced approximately 2,800 individuals to invest $9.4 million, promising returns as high as 1-2% daily, which translates to an unrealistic 547% annually. Ford promoted the scheme heavily through Wolf Capital’s website, social media, and online platforms, portraying himself as a seasoned trader capable of delivering such returns. However, instead of investing the funds as promised, he diverted them for personal use and to enrich his co-conspirators.
The DOJ revealed that Ford acknowledged the impossibility of consistently achieving the promised returns. He now faces up to five years in prison, with sentencing yet to be scheduled.
Ford’s case is one of many recent efforts to combat crypto-related scams globally. In Vietnam, authorities arrested four individuals involved in a fraudulent crypto mining operation that scammed over 200 victims out of $157,300. Meanwhile, law enforcement in Springfield, Massachusetts, warned residents about an increase in cryptocurrency ATM scams, where victims are directed to transfer funds directly to scammers.
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