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Former rugby player Shane Donovan Moore was sentenced to 2.5 years in federal prison for orchestrating a $900,000 crypto mining Ponzi scheme.
Operating through Quantum Donovan LLC from 2021 to 2022, Moore lured over 40 investors with promises of 1% daily returns from cryptocurrency mining hardware—but instead funneled their money into designer goods and real estate.
“Mr. Moore used the newness of cryptocurrency to commit an age-old fraud—a Ponzi scheme,” said Acting U.S. Attorney Teal Luthy Miller in a Department of Justice (DOJ) statement.
Moore capitalized on his rugby connections to recruit victims, assuring them their investments would fund high-yield Bitcoin mining operations. Instead, he spent nearly $1 million on luxury apartments, high-end luggage, and electronics, while using new investor funds to pay earlier backers—a hallmark of Ponzi schemes.
U.S. District Judge Tana Lin emphasized the damage done, noting Moore “caused emotional and psychological harm to the victims” beyond financial losses. The DOJ revealed the scheme collapsed in October 2022 after payouts stalled and investors grew suspicious.
The crypto mining Ponzi scheme joins a growing list of fraud cases exploiting hype around digital assets. In 2024 alone:
A Las Vegas man allegedly scammed 400+ investors out of $24 million with a fake AI-powered crypto mining operation.
Forcount Ponzi promoter Antonia Perez Hernandez received a 2-year sentence for wire fraud.
An 86-year-old California attorney was fined $14 million for a separate crypto Ponzi scheme.
“Crypto’s complexity makes it a magnet for Ponzi schemes,” said blockchain analyst Clara Wright of CertiK, referencing data showing over $5.5 billion lost to crypto scams in 2024.
Ponzi red flags: Moore’s promise of 1% daily returns was mathematically unsustainable—a classic warning sign.
Exploiting trust: The ex-athlete leveraged personal networks, a tactic also seen in pastor-led scams.
Regulatory crackdown: The DOJ’s pursuit of Moore signals tighter scrutiny of crypto investment claims.
The case underscores the need for due diligence in crypto mining ventures, as Ponzi schemes continue adapting to new technologies.
