DOJ Charges Purported Amalgam Blockchain Founder Over Wire, Securities Fraud

US prosecutors have filed a case against the self-styled head of a purported blockchain firm, Amalgam, for his alleged involvement in wire fraud.

Jeremy Jordan-Jones engaged in a scheme to defraud investors of over $1 million by misrepresenting his company and its partnerships. Per the DOJ release, he used investors’ money to fund a lavish lifestyle.

“Jordan-Jones’s alleged blatant lies funded his personal lifestyle at the expense of unknowing victims,” said Christopher Raia, FBI assistant director.

The prosecutors noted that he falsely claimed that Amalgam had lucrative high-profile partnerships with major-league sports teams and prominent payment-processing platforms.

He also made misleading statements regarding the blockchain firm’s financial condition, they added.

“He touted his company as a groundbreaking blockchain startup, backed by high-profile partnerships,” said U.S. Attorney Jay Clayton. “In reality, Jordan-Jones’s company was a sham, and investors’ funds were siphoned off to bankroll his lavish lifestyle.”

Additionally, Jordan-Jones solicited investments by promising that the money would be used to initiate the listing of Amalgam’s crypto coin. He also promised to use the investors’ money for hardware, software, and other expenses associated with the Amalgam’s operations.

Further, he submitted falsified financial statements to a bank, the release read.

The FBI warned users that fraudsters often use the “promise of new technology to cloak their schemes.” Last month, the Bureau had recorded a staggering $9.3 billion in losses to crypto-related fraud, scams and extortion.

The FBI recorded $9.3 billion losses spread across various crypto-related investment scams, extortion, ATM and kiosks, among others, in 2024.#FBI #CryptoFraud #CryptoScamhttps://t.co/1Eb8KStAHk

“The FBI is committed to apprehending any individual who employs deceitful tactics and illusionary business models to steal from trusted investors,” the agency said Wednesday.

Amalgam ran from January 2021 through November 2022, before shutting down, causing significant financial losses to investors and lenders.Besides, the case highlights ongoing regulatory scrutiny and legal actions against fraudulent activities in the crypto sector. Early this week, the Senate advanced the GENIUS Act, which would set up a regulatory framework for stablecoins.

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