Jeremy Jordan-Jones, the founder of Amalgam Capital Ventures, has been charged with fraud after US authorities accused him of tricking investors into giving him over $1 million for a fake blockchain project.
He was indicted and arrested on May 21 after the Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI) completed their investigation.
According to court documents, Jordan-Jones ran a scheme between January 2021 and November 2022. During that time, he claimed his company was working on new blockchain-based payment tools and sales systems.
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He also told investors that Amalgam had formed partnerships, including with sports groups, and that the company would soon be listed on crypto exchanges. However, prosecutors say these claims were false.
Officials said Amalgam had no working products, almost no customers, and had not formed any real partnerships. Still, investors were led to believe the business was growing. Jordan-Jones allegedly used these lies to convince people to hand over money, which he then spent on personal expenses instead of business development.
The charges also say he created fake financial records to support his claims. In one example, he submitted a bank statement showing over $18 million in Amalgam’s account to apply for a company credit card.
Jordan-Jones faces several charges, including wire fraud, securities fraud, making false statements to a bank, and identity theft. The fraud charges each carries penalties of up to 20 years in prison. The charge for lying to a bank could lead to 30 years. The identity theft charge has a mandatory two-year sentence if convicted.
On May 20, the Securities and Exchange Commission (SEC) filed a lawsuit against Unicoin, a crypto investment firm, and three of its senior executives. What happened? Read the full story.
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