Amalgam’s Founder Accused of Operating a Fraudulent Blockchain Scheme, Defrauding Investors of $1 Million

Prosecutors have brought fraud charges against Jeremy Jordan-Jones, who claimed to have founded a cryptocurrency startup named Amalgam, which has since ceased operations. They assert he deceived investors out of over $1 million through this so-called blockchain venture, financing a lavish way of life with the illicit funds.

Legal claims suggest that Jordan-Jones misrepresented Amalgam as an innovative technology firm specializing in blockchain-based payment systems. He alleged that they had established high-value partnerships, including collaborations with well-known sports teams and a major restaurant chain. Prosecutors argue that none of these claimed partnerships were legitimate. Additionally, it’s alleged that he solicited investors, promising the funds would be used to launch Amalgam’s fictitious cryptocurrency on an exchange.

While embellishing tales for potential investors, including a venture capital firm referenced in a prior publication, it is claimed that Jordan-Jones squandered their investments to indulge in luxury—spending on hotels, dining in Miami, car installments, and high-end fashion.

“Jordan-Jones took advantage of the excitement surrounding blockchain technology to execute a bold fraud scheme,” remarked U.S. Attorney Jay Clayton. He emphasized that while presenting his company as a revolutionary blockchain entity with prestigious partnerships, the truth was that it was a facade, with investors’ contributions directed toward his extravagant lifestyle. This situation illustrates to potential fraudsters that law enforcement is vigilant, and often fraudsters hide their schemes behind the allure of innovative technology.

Moreover, prosecutors allege that Jordan-Jones provided false documentation to a bank, enabling him to fraudulently acquire a corporate credit card, resulting in a substantial debt of $350,000 before the account was shut down.

Jordan-Jones faces a series of charges, including wire fraud, securities fraud, providing false statements to a financial institution, and aggravated identity theft. Collectively, these accusations could lead to a maximum prison sentence of 82 years, with the identity theft charge carrying a mandatory minimum of two years.