A cryptocurrency Ponzi scheme orchestrated by Wolf Capital's co-founder and head trader, Travis Ford, has unraveled, with Ford pleading guilty to conspiracy to commit wire fraud. The scam, which ran between January and August 2023, duped 2,800 investors out of $9.4 million, promising an astronomical 547% annual return.

The U.S. Department of Justice (DOJ) revealed on January 10 that Ford portrayed himself as a savvy investor, guaranteeing daily returns of 1-2% through the firm's website and aggressive social media promotions. However, instead of fulfilling these claims, Ford misused the funds for personal gain, causing significant losses to investors. Ford has admitted the impossibility of delivering such consistent returns, confirming the fraudulent nature of the scheme.

Although his sentencing date remains undecided, Ford faces a maximum of five years in prison for his role in the conspiracy.

This case is part of a broader crackdown on cryptocurrency scams worldwide. In Vietnam, police recently arrested four individuals accused of stealing $157,300 through a fraudulent crypto mining operation targeting over 200 victims. Similarly, authorities in Springfield, Massachusetts, have issued warnings about crypto ATM scams, where unsuspecting users are directed to deposit funds directly to scammers.

Blockchain security firm PeckShield has reported that crypto-related hacks and scams surged to over $3 billion in 2024, marking a 15% increase from the previous year. These developments highlight the growing need for investor caution as cryptocurrency-related fraud continues to evolve.

This case serves as a stark reminder of the risks in the crypto space, urging investors to remain vigilant and scrutinize opportunities that seem too good to be true.