Pennsylvania crypto ponzi scheme mastermind gets 8 years in $40m fraud case

A crypto ponzi scheme has once again rocked the digital asset world, as authorities sentenced Dwayne Golden for orchestrating a $40 million Ponzi scheme in Pennsylvania.

The Department of Justice confirmed the crypto Ponzi scheme lured investors through false promises. This devastating crypto ponzi scheme highlights rising fraud in crypto.

Crypto ponzi scheme fraudster Dwayne Golden has been sentenced to over eight years in federal prison for orchestrating a $40 million deception that shook the crypto world—marking one of the most damning examples of how traditional scams morph into digital-age crimes.

The U.S. Department of Justice (DOJ) confirmed that Golden, 57, of Harrisburg, Pennsylvania, was handed the prison sentence by Judge William F. Kuntz II in a Brooklyn federal courtroom.

The ruling underscores how the justice system is intensifying its grip on crypto crimes dressed in digital sophistication but rooted in old-school fraud.

Crypto ponzi scheme disguised as innovation

The crypto ponzi scheme masterminded by Golden and three co-conspirators—Gregory Aggesen, Marquis Demacking Egerton (aka “Mardy Eger”), and William White—relied on glitzy crypto websites such as EmpowerCoin, ECoinPlus, and Jet-Coin.

These platforms operated between April and August 2017, promising investors guaranteed high returns from international cryptocurrency trading.

In reality, the DOJ revealed there was no genuine trading activity whatsoever.

“These platforms were nothing more than deceptive shells built to siphon off funds from unsuspecting investors,” said U.S. Attorney Joseph Nocella. “This case is a stark reminder that behind many digital promises lie very analog lies.”

FBI: $40m raised, but no trading took place

FBI Assistant Director-in-Charge James Smith stated that the crypto ponzi scheme raked in over $40 million in investor funds.

Instead of engaging in any real trading, the group used the funds to pay off earlier investors—classic ponzi behavior—or diverted the money for personal enrichment.

Golden and his associates then went a step further: they tried to cover up their crimes for nearly five years, from July 2017 to March 2022.

According to the DOJ, the group attempted to obstruct both a Federal Trade Commission (FTC) inquiry and a grand jury investigation. They destroyed evidence and issued false statements, further deepening the deception.

Golden’s sentence includes the forfeiture of $2.46 million in illicit gains. The court has not yet ruled on restitution, but the DOJ is actively encouraging victims to come forward.

“Victims of EmpowerCoin.com, ECoinPlus.com, or Jet-Coin.com should submit claims through the FBI portal,” said DOJ officials.

William White, another participant in the crypto ponzi scheme, has already been sentenced to 30 months in prison. Aggesen and Egerton have pleaded guilty and are awaiting sentencing.

The ripple effects: crypto scams surge

Golden’s conviction arrives at a time when crypto ponzi schemes are increasingly prevalent. Just weeks before this sentencing, five other individuals admitted guilt in a $36.9 million cryptocurrency fraud operation that funneled money to a Cambodia-based scam.

“It’s the same playbook—new technology, old deception,” said Lisa Monaco, Deputy Attorney General. “We’re seeing a surge in digital financial crimes that borrow from the ponzi structure but leverage the anonymity and reach of blockchain.”

Crypto watchdogs are warning that the appeal of quick returns in unregulated environments makes the space ripe for exploitation.

“Investors need to stop chasing shiny objects,” said John Reed Stark, former SEC internet enforcement chief. “Every time you hear ‘guaranteed profits’ in crypto, a red flag should go up.”

The DOJ emphasized that the Golden case sets a precedent and delivers a message: Crypto ponzi scheme operators will be hunted down and punished.

Victims’ right and path to recovery

For those who lost funds in the $40 million scam, there’s a small window of hope.

“This office is committed to protecting investors and holding fraudsters accountable,” U.S. Attorney Nocella reiterated. “We will continue to pursue justice for those harmed.”

While financial restitution can never fully undo the trauma of fraud, the active DOJ encouragement of claims suggests victims may finally see partial recovery.