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Crypto Conman Sentenced: Investors Duped in $350K Scam—Here’s How

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The US Department of Justice has announced the sentencing of Michael Joseph McElhiney, a Spokane resident, to over three years in federal prison for operating a fraudulent crypto investment scheme. The fraud, which spanned over a year, defrauded multiple investors of more than $350,000.

The sentencing, handed down by United States District Judge Thomas O. Rice, includes 41 months in federal prison, three years of supervised release, and restitution totaling $326,119. McElhiney was immediately remanded to federal custody following the hearing.

The Scamming Tactics

The fraudulent scheme revolved around a fake crypto investment fund, MAC Blockchain Solutions. McElhiney lured investors by presenting himself as an “experienced operator” of a successful crypto investment fund, promising lucrative returns from investments in emerging cryptocurrencies, Ethereum staking, and liquidity pools.

However, according to the US DoJ report, the promised crypto investments were never made, and the funds were instead used for McElhiney’s expenses, including gambling.

The agency further revealed that McElhiney targeted victims through personal encounters and online interactions, including meeting individuals via Uber rides, dating apps, and video games such as Call of Duty” under the username “Bing Bong.”

His strategy often involved developing personal relationships to gain trust before soliciting investments. Victims were provided with “fabricated data” through a platform called Coin.FYI, which falsely displayed progress and growth in their supposed investments.

Furthermore, investors were promised that they could liquidate their investments anytime and receive guaranteed returns. In reality, the

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Author: Samuel Edyme

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