Travis Ford, co-founder and head trader of cryptocurrency investment firm Wolf Capital, has pleaded guilty to charges of wire fraud conspiracy. The charges stem from his involvement in defrauding approximately 2,800 investors out of $9.4 million through a Ponzi scheme.
Ponzi Scheme Promised Unrealistic Returns
According to a statement released by the U.S. Department of Justice (DOJ) on Jan. 10, Ford falsely portrayed himself as a “sophisticated investor” capable of generating daily returns of 1-2%, which would amount to an annual return of 547%. These promises were used to lure investors between January and August 2023.
The DOJ revealed that Ford gained investors’ trust through Wolf Capital’s website, social media, and other online promotions, where he misrepresented his ability to achieve such returns.
Instead of using the funds for legitimate investments, Ford and his associates misappropriated the money for their personal financial benefit, leaving investors at a loss. The DOJ stated:
“Ford misappropriated and diverted investor funds to benefit himself and his co-conspirators, to the financial detriment of investors.”
Ford later admitted that achieving such high returns consistently was not feasible.
Legal Consequences
Ford has pleaded guilty to one count of conspiracy to commit wire fraud. While a sentencing date has not been set, the charge carries a maximum penalty of five years in prison.
Ford’s guilty plea comes amid a growing global crackdown on cryptocurrency-related scams. Authorities in multiple jurisdictions are targeting fraudsters who exploit the rapid growth of crypto markets.
