Crypto Firm Co-Founder Admits to $9M Fraud Scheme

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.

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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.

Alexander Stefanov