Former Rugby Player Gets 30-Month Prison Sentence for Crypto Mining Scam

Shane Donovan Moore, a former semi-professional rugby player, was recently found guilty of crypto investment fraud. As announced by Acting U.S. Attorney Teal Luthy Miller, the 37-year old man was sentenced to 30 months in prison.

Over $397K Lost to Fake Claims

According to the press release, the Seattle-based convict operated a company called Quantum Donovan LLC. He recruited investors in Utah, Oregon, Connecticut, New Jersey, and Washington, soliciting more than $900,000. Many of them were people he knew from when he was playing rugby.

Moore told these investors that his company was purchasing and operating cryptocurrency mining equipment. However, Quantum Donovan LLC was a Ponzi scheme that was simply using capital from later investors to pay off initial investors. This created the illusion of a thriving investment opportunity in the minds of unsuspecting victims.

Acting U.S. Attorney Teal Luthy Miller said,

“Mr. Moore used the newness of cryptocurrency to commit an age-old fraud – a Ponzi scheme. He solicited more than $900,00 from some 40 investors claiming it would be used for ‘mining cryptocurrency.’ Instead, the money went to support a lavish lifestyle, and to pay off the earliest investors to keep the fraud going. He left a path of damaged relationships in his wake.”

Moore promised his investors huge returns, saying that they would receive 1% of their investments everyday. He even went as far as putting these claims into writing to fine-tune his fraudulent strategy. As a result, his early unsuspecting investors also brought in their friends and family.

Unfortunately, the 37-year old never lived up to any of these promises. He deceived his investors into believing that the cryptocurrency mining operation existed. 

According to Assistant United States Attorney Brian Wynne, the victims suffered a devastating loss of over $387,000 to this scam. Prosecutors requested a three-year prison sentence, but Moore was sentenced to 30 months in prison instead.

Crypto Scams on the Rise

Crypto scams have been on the rise lately, with perpetrators utilizing different techniques to lure victims. For example, UAE law enforcement recently arrested WhiteRock Finance’s founder for his alleged involvement in the $30 million Zkasino exit scam. 

Earlier this month, the U.S. Department of Justice also charged OmegaPro founders for $650 million in wire fraud and money laundering.

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