Operator of “Coin Signals” is in settlement talks with CFTC
The Commodity Futures Trading Commission (CFTC) has provided an update on the status of the proceedings targeting Jeremy Spence, the operator of “Coin Signals”.
The document, filed with the New York Southern District Court on June 9, 2022, states that the CFTC and Spence have been engaged in settlement discussions through Mr. Spence’s criminal counsel, Neil Kelly, Esq. Mr. Spence has agreed in principle to proposed settlement terms, which must be submitted for consideration and approval by the Commodity Futures Trading Commission prior to its submission to the Court for approval.
The parties are set to provide a further status update to the Court by August 1, 2022.
Earlier this year, the CFTC sought the entry of a default judgment against Spence. Under the proposed judgment, Jeremy Spence has to pay a civil monetary penalty in the amount of $33,000,000. He will also have to pay restitution in the amount of $11,036,046.27 to the Coin Signals customers.
Whether the terms of the settlement are the same as those envisaged by the proposed default judgment is not clear at this point.
Let’s recall that the CFTC filed its complaint against Spence in January 2021. Spence was charged with fraud for operating a Ponzi scheme involving digital assets such as bitcoin and ether in which he fraudulently solicited more than $5 million of investments from individuals.
The complaint alleges that Spence, at times operating as “Coin Signals,” ran a Ponzi scheme in which he fraudulently solicited and obtained digital assets such as bitcoin and ether worth more than $5 million from customers. According to the complaint, Spence’s trading resulted in significant trading losses and, as in all Ponzi schemes, his payouts of supposed profits to customers in actuality consisted of other customers’ misappropriated funds.
Spence allegedly engaged in numerous efforts to conceal his misconduct, including misrepresenting his trading profitability and the amount of assets he had under management, misappropriating customer funds, and issuing false performance statements. As stated in the complaint, Spence eventually admitted to his customers that he had engaged in “lies and deceit.”