Crypto Scammer Gets 8 Years For $40M eEmpowerCoin, ECoinPlus Fraud

Key Insights:

• Fraudster behind eEmpowerCoin, ECoinPlus, sentenced to 8 years.
• $40 Million stolen from investors in classic Ponzi-style crypto scam.
• Court highlights growing crackdown on high-value crypto fraud schemes.

A crypto scammer was sentenced to eight years in prison after he ran two bogus crypto exchanges. The eEmpowerCoin and ECoinPlus were the schemes that misappropriated investors’ funds. It amounted to more than 40 million dollars globally.

The U.S. Department of Justice (DOJ) announced the sentencing this week. This represents one of the largest crackdowns on crypto fraud this year.

The Way the Crypto Scammer Worked

The crypto scammer opened two platforms during the crypto boom of 2017 to 2018. They offered large profits from crypto trading robots and insider strategies.

There was no trade; the websites were not real, and the balances were false. Victims thought that their money was multiplying.

Instead, the money invested by new investors was used to reimburse the old investors. It became what is referred to as a Ponzi scheme. The scammer spent the remaining money on luxury items, tourism, and other individual expenditures.

Crypto Scammer Hit U.S. and Beyond

Crypto fraud was committed against thousands of people. More than 20 countries were victimized in this attack, including the U.S., Canada, the UK, and Australia.

Thousands of people lost their savings, one of the victims in Texas narrated to the court, “I trusted them. I have suffered a loss of 25000. It was nothing but a lie.”

The crypto scammer reportedly integrated phony testimonies and actors to look legit. Even the websites offered referral bonuses to attract more users.

FBI and Chainalysis Join the Case

In 2022, the FBI Cybercrime Division launched the investigation. They collaborated with Chainalysis, a blockchain tracing company.

Collectively, they tracked crypto wallet addresses, email records, and online messaging. They confiscated digital wallets, laptops, and papers.

So far, over 9 million dollars have been recovered, said the DOJ. The remainder is lacking; some might be in cold wallets, which are more challenging to track.

A Warning to Crypto Investors

According to the judge, this was a classic clash of greed and deceit. He cautioned people against believing such promises.

According to crypto crime experts, it is a bigger trend. In 2025, the regulators closed down phony crypto projects. Other big scams, such as OneCoin or BitConnect, have also cost their organizers prison.

Twitter accounts such as @zachxbt and @fatmanterra have made it possible to reveal most of these scams. They usually write about scams daily.

In a recent post, @zachxbt wrote, “People need to get out of the habit of going after guaranteed profits. Make your research. When something sounds too good to be true–it is.”

Experts Call For Tighter Crypto Regulations

The crypto scammer is to be sentenced to eight years of federal incarceration. Once they are released, they will continue to serve another three years of supervised release.

Then a restitution hearing will be conducted. However, according to experts, most victims will likely not recover their money.

Law professionals think that the case would enforce more regulations on crypto. DOJ further encourages investors to examine licensing and not use anonymous platforms.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.