A US grand jury has indicted Jeremy Jordan-Jones, the founder of blockchain startup Amalgam Capital Ventures, accusing him of defrauding investors out of more than $1 million with a fraudulent blockchain scheme. Jordan-Jones was arrested and charged on May 21 with wire fraud, securities fraud, making false statements to a bank, and aggravated identity theft, according to the Department of Justice. Manhattan US Attorney Jay Clayton stated that Jordan-Jones “promoted his company as an innovative blockchain startup, ” but in truth, “the company was a sham, and investors’ money was diverted to support his extravagant lifestyle. ” FBI Assistant Director Christopher Raia alleged that Jordan-Jones misled investors by overstating his company’s capabilities, partnerships, and investment goals, defrauding them of over $1 million. Raia added that the Amalgam founder’s “blatant lies” financed his personal lifestyle at the expense of unsuspecting victims. An indictment filed in a Manhattan federal court detailed that between January 2021 and November 2022, Jordan-Jones deceived investors and financial institutions through forged documents, fake sports partnerships, and false claims, ultimately misappropriating over $1 million for personal use. Related: Ex-Cred executives plead guilty to wire fraud in $150M crypto collapse. According to court documents, Amalgam purported to offer point-of-sale systems along with blockchain-based payment and security solutions. However, the indictment stated the company had “no functional products, few if any customers, and no legitimate business partnerships. ” Instead of using funds for technological development and crypto exchange listings as promised, Jordan-Jones allegedly spent the money on luxury cars, lavish vacations, high-end clothing, and dining at upscale Miami restaurants. He was also accused of submitting a fraudulent bank statement indicating Amalgam had over $18 million to obtain a company credit card. Prosecutors asserted that the account was empty and had been closed by late 2021. Wire fraud and securities fraud charges carry up to 20 years in prison each, while making false statements to a bank can result in up to 30 years.

The aggravated identity theft charge mandates a minimum two-year sentence. The government seeks forfeiture of any assets or money linked to the fraudulent activities, including substitute assets if the original funds cannot be recovered.