Ryan Felton, a Hollywood movie producer from Atlanta, was found guilty of scamming $2.4 million from unsuspecting cryptocurrency investors, Finbold confirms. He even admitted to using the money to fund his own extravagant lifestyle.
Felton is said to have used more than $1.7 million in all-cash to purchase a residence, a Ferrari, a Chevy Tahoe, and diamond jewelry. The method by which Felton attained the money was by promoting an Initial Coin Offering for FliK, saying that the company would exceed Netflix.
Moreover, in 2018, Felton promoted another company, CoinSpark, promising that investors would receive 25% of the profits in dividends. His promotion tactics were pretending to be an investor and making several fake accounts. He even lied that a popular Atlanta rapper was backing the project. US attorney Ryan K. Buchanan said:
“The defendant used 21st-century technology to perpetrate an age-old fraud: lying to investors to steal their money and fund his own lavish lifestyle. Felton’s conviction should serve as a warning to anyone who seeks to capitalize on emerging technology to victimize others.”
“Felton's conviction should serve as a warning to anyone who seeks to capitalize on emerging technology to victimize others. The technology has advanced, but the crime remains the same, and those who invest in cryptocurrency must be wary of opportunities that appear too good to be true.”
In the end, Felton pleaded guilty to twelve incidences of wire fraud, ten incidences of money laundering, and two instances of securities fraud. The US District Court Judge J. P. Boulee is soon to sentence him at his prime age of 48.