2,800 Investors Left Reeling After Crypto CEO's $9.4 Million Ponzi Scheme Falls Apart

Bitget App

Trade smarter

Bitget

News

Markets

2,800 Investors Left Reeling After Crypto CEO's $9.4 Million Ponzi Scheme Falls Apart

Bitget-RWA2025/11/14 21:10

By:Bitget-RWA

- Travis Ford , CEO of Wolf Capital, was sentenced to 5 years for a $9.4M crypto Ponzi scheme defrauding 2,800 investors. - Funds were misused for luxury purchases and gambling , with victims including retirees and young professionals. - The DOJ highlighted the case amid a global crypto fraud surge, including a $6B Chinese scheme and $1.5B ByBit theft. - Prosecutors condemned Ford's "market pressures" defense, as 2025 saw over $2.17B in U.S. crypto scam losses.

Travis Ford, who served as CEO of Wolf Capital Crypto Trading LLC, has been handed a five-year sentence in federal prison by a U.S. court for masterminding a $9.4 million cryptocurrency Ponzi scheme that deceived close to 2,800 investors. The 36-year-old Glenpool, Oklahoma resident must also forfeit more than $1 million and pay $170,000 in restitution,

according to statements from the DOJ and USPIS

. The judgment, issued on November 14, 2025, comes after Ford admitted guilt in January 2025 to conspiracy to commit wire fraud.

Between January and August 2023, Ford ran Wolf Capital, presenting it as a lucrative crypto investment opportunity. He

promoted daily profits of 1–2%

(which would amount to 547% per year) through a polished website and active social media marketing. Legal filings show Ford and his associates knowingly made these unsustainable promises. Rather than investing, they diverted investor money for personal use—buying luxury goods, gambling, and real estate—until the operation unraveled in August 2023 when withdrawals were halted.

The DOJ highlighted that Ford’s conduct left many investors—including retirees and young professionals—in severe financial distress. "Ford failed to invest the majority of funds as he had pledged," the DOJ reported. "Instead, he used new investors’ money to pay earlier participants, following the typical Ponzi model." The USPIS led the investigation, having

examined financial transactions and marketing content

to build their case against Ford.

This verdict comes amid a worldwide increase in crypto-related scams. Earlier this year, a Chinese national known as the "cryptoqueen" received an 11-year sentence for orchestrating a $6 billion

Bitcoin

Ponzi operation, and North Korean cybercriminals were implicated in a $1.5 billion theft from ByBit exchanges. The DOJ has also launched a Scam Center Strike Force to tackle these crimes, particularly those emerging from Southeast Asia and China.

Ford’s conviction highlights the dangers of investing in unregulated cryptocurrencies. "

Scam incidents have risen at an alarming rate

in 2025," one report observed, noting losses exceeding $2.17 billion in just the first six months of the year. Prosecutors rebuked Ford for attributing his actions to "market pressures" during his sentencing, describing it as an attempt to evade accountability.

References:

Cryptocurrency Investment Firm Founder Sentenced to Five Years in Prison for Defrauding Investors in $9.4M Ponzi Scheme

Wolf Capital co-founder Travis Ford jailed 5 years over $9.4m Ponzi scheme

Wolf Capital CEO Sentenced to 5 Years in Jail for Ponzi Scheme

Wolf Capital CEO Receives Five-Year Prison Term in $9.4 Million Crypto Fraud Case

US Man Behind $9.4 Million Crypto Ponzi Scheme Learns His Fate in Court

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops

Lock your assets and earn 10%+ APR

Lock now!

Quick Take Summary is AI generated, newsroom reviewed. The Madras High Court declared crypto assets like XRP as legal property. The case involved a WazirX user who lost XRP during a platform hack. The court said digital assets show real ownership traits. Holders now get legal protection similar to physical property ownership.References X Post Reference

coinfomania•2025/11/15 02:54

XRP and DOGE ETFs: Grayscale Moves Closer to U.S. Trading

Quick Take Summary is AI generated, newsroom reviewed. Grayscale lists XRP and DOGE ETFs in the DTCC registry. Listing signals progress toward potential SEC approval. ETFs let investors access crypto without wallets or exchanges. XRP and Dogecoin could see increased adoption and market inflows.References XRP AND DOGE ETF INCOMING! Grayscale's $XRP and $DOGE ETFs have been added to the DTCC registry.

coinfomania•2025/11/15 02:54

Whale Buys ETH: Could Large Purchases Stabilize Prices?

Quick Take Summary is AI generated, newsroom reviewed. Whale #66kETHBorrow purchased 19,508 SETH, totaling 405,238 ETH. Portfolio shows $126M in unrealized losses, yet he continues buying. Large buys by whales can stabilize ETH prices and affect market sentiment. Activity signals strong long-term confidence in Ethereum among big investors.References WHALE BUYS $61M IN ETH! LookonChain flags whale #66kETHBorrow scooping up 19,508 SETH, pushing his total since Nov 4 to 405,238 ETH ($1.29 BILLION).

coinfomania•2025/11/15 02:54

Bitcoin Updates Today: Apeing’s Whitelist Compared to Bitcoin’s Surge: The 2025 Crypto Battle Between Innovation and Speculation

- Apeing ($APEING) emerges as a 2025 crypto standout with a whitelist-first model emphasizing Ethereum-based security and community governance. - Bitcoin tests $105,000 resistance amid stalled institutional demand, while Ethereum advances Supra's 1.5x faster EVM execution engine to address scalability. - Market analysts highlight a "mid-cycle consolidation phase," with 72% of Bitcoin supply still in profit despite recent volatility. - Apeing's structured whitelist contrasts with meme coin risks, offering e

Bitget-RWA•2025/11/15 02:52