Bank

Value

Stadium

A man from Colorado pleaded guilty to fraud charges amounting to $2.2 million and faces up to 20 years of imprisonment upon conviction. According to court documents, the 46-year-old Robert Wesley Robb used social media platforms to market his investment idea to unsuspecting investors.&nbsp;
Also read: <a href="https://www.cryptopolitan.com/ripple-ceo-and-clo-issue-statement/" rel="noopener noreferrer nofollow">Ripple CEO and Chief Legal Officer issue statements on XRP case rumors</a>
Robert’s pitch lured investors into committing as little as $100 and upwards of $200,000 “sitting around,” urging them to send him a direct message (DM) to take advantage of the opportunity. He then convinced the unsuspecting investors to believe that he was developing a Maximum Extractable Value (MEV) crypto trading bot capable of generating high returns on investment.
Robb convinced the victims to send their investments to his crypto wallet, promising them yields as soon as the bot was fully functional. However, he transferred the funds to his cryptocurrency exchange account and proceeded to withdraw the funds to his personal bank accounts. Court <a href="https://www.justice.gov/usao-edva/pr/colorado-man-pleads-guilty-crypto-investment-fraud-scheme" rel="noopener noreferrer nofollow" target="_blank">documents</a> issued by the United States Attorney’s Office highlighted that an investigation launched on the case revealed that more than 10 investors fell victim to Robb’s scheme and lost their investments.
<h2 id="span-style-font-weight-400-colorado-man-misappropriated-investors-funds-span">Colorado man misappropriated investors’ funds&nbsp;</h2>
One particular victim from Brambleton, Virginia invested $100,000 through an Ethereum crypto address that Robert provided. Days later, Robb reportedly lied to the victim that another investor would dilute his gains by investing $300,000, to which the victim sent an additional $50,000 to Robert’s ETH address. After days, the investor reached out to Robb for a refund, likely due to the fact that the Colorado man had not yet paid out any proceeds, to which Robb responded by stating that the bot was “warming up” and would start trading soon.&nbsp;
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Robert Wesley Robb, 46, of Colorado, pled guilty today to wire fraud relating to his scheme to fleece investors through a series of misrepresentations and high-pressure tactics. <a href="https://twitter.com/hashtag/FBI?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#FBI</a> <a href="https://twitter.com/hashtag/USAO?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#USAO</a> <a href="https://twitter.com/hashtag/justice?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#justice</a><a href="https://t.co/ELHd54o2Xj" rel="noopener noreferrer nofollow" target="_blank">https://t.co/ELHd54o2Xj</a>
 — U.S. Attorney EDVA (@EDVAnews) <a href="https://twitter.com/EDVAnews/status/1804275588036743505?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">June 21, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
The Colorado man allegedly misused the funds investors sent to his crypto wallet despite promising investors his MEV bot would be live soon. Bank <a href="https://www.justice.gov/usao-edva/pr/colorado-man-pleads-guilty-crypto-investment-fraud-scheme" rel="noopener noreferrer nofollow" target="_blank">details</a> presented to the court indicated that Robert used the investors’ funds for personal expenses and luxury purchases. The documents also revealed that he used the funds to fund his expensive trips and vacations.&nbsp;
Also read: <a href="https://www.cryptopolitan.com/layerzero-price-rising-following-binance-listing-5-other-new-crypto-listings-to-watch/" rel="noopener noreferrer nofollow">LayerZero Price Rising Following Binance Listing: 5 Other New Crypto Listings to Watch</a>
Robb also reportedly used the money to buy airline tickets and luxury cars. He leased a luxury suit for more than $200,000 at the Denver Broncos’ Mile High Stadium and spent almost $50,000 to fund a vacation for his girlfriend and her family members in the Bahamas. He also purchased a 2023 Jeep Wagoneer for more than $100,000.
The Colorado man’s sentencing is scheduled for October 2nd, and Assistant U.S. Attorneys Zoe Bedell and Katherine E. Rumbaugh are the prosecutors in the case. He faces up to 20 years in prison, but similar sentences for federal crimes usually fetch a lighter penalty than the maximum following U.S. sentencing guidelines.
&nbsp;
Cryptopolitan reporting by Collins J. Okoth

Colorado man pleads guilty to a $2.2M crypto fraud scheme

Table of Contents

Cryptopolitan_News

Other articles published on Jun 23, 2024

OKX Wallet Integrates with ChainGPT and AITECH

Watch Out: There Are Critical Economic Developments and Altcoin Events in the New Week – Here is ...

Bitcoin, Ethereum, And XRP Price Prediction: Top Tokens To Retest Their Crucial Support?

$11M Lost in Permit Signature Scam: Security Experts Urge Caution with Off-Chain Transactions

Qubetics Whitelist Earns Investor Recognition As Bitcoin And Cardano Get Critiqued For Dawdling T...

ETFSwap (ETFS) Set To Launch Own ETF Following Spot Ethereum ETFs Approval Ahead Of Ripple (XRP) ...

Join our free newsletter for daily crypto updates!