In Spokane, Washington, a significant legal event took place as United States District Judge Thomas O. Rice handed down a sentence. 38-year-old Michael Joseph McElhiney was sentenced to more than three years in federal prison for his involvement in a cryptocurrency scheme that defrauded investors of over $350,000.

Uncovering the Cryptocurrency Fraudster's Downfall

Details of the Fraud Scheme

Michael McElhiney was found to have defrauded investors by pretending to operate a cryptocurrency investment fund called MAC Blockchain Solutions. From March 4, 2021, to September 10, 2022, he promised prospective investors that he and his purported business partners ran a successful fund investing in emerging cryptocurrencies and blockchain-based projects like Ethereum staking and liquidity pools. He often contacted victims in person, especially those working as Uber drivers and women met through dating apps. He also met victims online while playing "Call of Duty" under the username "Bing Bong" and developed personal relationships with them before soliciting funds.He promised to invest victims' money and manage it for their benefit, assuring them of certain returns and that they could liquidate their investments at any time. However, he never actually invested the funds but kept them for his personal use. He sent investors information using Coin.FYI that purported to track their investments but was a mere facade.

Impact on Investors

Investors, in good faith, entrusted their money, art, and precious metals to McElhiney, expecting a safe return. Instead, he stole their funds and used them for his own purposes. When investors asked for their money back, he lied to continue the fraud. This not only caused financial losses but also emotional distress to the victims.

Law Enforcement Actions

This case was investigated by Homeland Security Investigations and the Spokane Police Department. Assistant United States Attorney Dan Fruchter prosecuted the case. The actions of these law enforcement agencies demonstrate their commitment to holding fraudsters like McElhiney accountable.The sentencing serves as a reminder that those who engage in fraudulent schemes will be brought to justice. It shows that regardless of the platform or technology used, those who prey on the trust of others will face the consequences.