Jeremy Jordan-Jones, the founder of the defunct cryptocurrency startup Amalgam, has been accused of fraud by prosecutors, who claim he deceived investors in his 'sham blockchain' out of over $1 million, using the funds to finance his extravagant lifestyle. According to prosecutors, Jordan-Jones portrayed Amalgam as a technology firm that developed blockchain-based payment systems, claiming it had partnerships with sports teams, including the Golden State Warriors and an English Premier League soccer team, as well as a large restaurant chain. However, these partnerships did not exist, prosecutors said. Jordan-Jones allegedly also solicited investments by telling investors the money would be used to list Amalgam's non-existent cryptocurrency on an exchange.
While spinning tales for investors, including a venture capital firm, prosecutors claim Jordan-Jones spent their money on luxury hotels, restaurants, car payments, and designer clothing. U.S. Attorney Jay Clayton stated, 'Jordan-Jones exploited the hype surrounding blockchain technology to perpetrate a brazen scheme to defraud investors, touting his company as a groundbreaking startup with high-profile partnerships, when in reality, it was a sham.' Prosecutors also accuse Jordan-Jones of providing false documents to a financial institution to obtain a corporate credit card, which he used to accumulate a $350,000 balance before the account was closed. Jordan-Jones faces charges of wire fraud, securities fraud, making false statements to a financial institution, and aggravated identity theft, carrying a combined maximum sentence of 82 years in prison.