A man at the heart of one of the largest crypto Ponzi schemes of the last decade will spend nearly eight years in federal prison after being sentenced Friday in Brooklyn. Dwayne Golden, 57, was handed a 97-month prison term for wire fraud and money laundering tied to a sprawling web of fake crypto investment schemes that bilked investors out of more than $40 million, according to the Department of Justice (DOJ).
Golden, along with partners Gregory Aggesen and Marquis Egerton (also known as Mardy Eger), operated three fraudulent companies EmpowerCoin, ECoinPlus, and Jet-Coin between April and August 2017. They falsely promoted these firms as successful international crypto trading operations, promising guaranteed returns to lure unsuspecting investors eager to cash in on the burgeoning digital currency market.
The Classic Ponzi Playbook
Federal prosecutors detailed how Golden and his accomplices ran a textbook Ponzi scheme: they collected investor deposits under the guise of cryptocurrency trading, then used the incoming funds to pay earlier investors or syphoned the money off for personal enrichment. No actual trading took place at any of the three firms.
“Golden and his co-defendants offered no legitimate services, and none of the companies engaged in any actual trading in cryptocurrency as they claimed,” United States Attorney Joseph Nocella said, describing the scheme as an exploitation of investor excitement over emerging technology.
The companies folded soon after raising tens of millions, leaving a trail of devastated victims and empty promises.
Covering Their Tracks
When the schemes inevitably collapsed, Golden and his partners did not simply fade away. Prosecutors said they tried to obstruct both a Federal Trade Commission (FTC) probe and a federal grand jury investigation, going so far as to destroy incriminating evidence and provide false information to investigators.
In addition to the prison sentence, Golden was ordered to forfeit approximately $2.46 million in proceeds from the fraud. Co-defendant William White, who was involved in the conspiracy, has already been sentenced to 30 months in prison. Aggesen and Egerton are still awaiting sentencing, and federal authorities have signalling that additional penalties could be severe.
FBI Assistant Director Christopher Raia called the conspiracy “an elaborate scheme rooted in deceit and false promises to swindle investors,” adding that Golden’s conduct reflected “an utter disregard for integrity.” Raia emphasised that the sentence should serve as a warning to anyone considering similar crypto frauds.
Victims Encouraged to Seek Restitution
With millions still missing and hundreds of victims affected, the DOJ urged those who suffered losses to submit restitution claims through the FBI’s online portal. Investigators continue to trace assets in hopes of recovering more funds for defrauded investors.
Crypto Scams Continue to Surge
Golden’s conviction comes amid a wave of crypto-related fraud cases sweeping across the globe. Earlier this month, five men pleaded guilty in an unrelated case involving a $36.9 million scam that targeted Americans through social media, messaging apps, and dating platforms. Victims were lured with promises of quick profits from bogus crypto investments, only to see their money funnelled to a scam centre operating out of Cambodia.
CertiK co-founder Ronghui Gu highlighted the alarming rise in crypto crime, noting that more than $2.1 billion has already been stolen in 2025 alone, with most losses stemming from wallet compromises and mishandled private keys.
A Cautionary Tale for Investors
The DOJ’s latest bust underscores the persistent risks in the rapidly evolving crypto space, where opportunistic fraudsters prey on hype and technical complexity to dupe investors. Federal authorities vowed to continue cracking down on crypto scams, warning that even sophisticated schemes can unravel under scrutiny.
For those considering digital asset investments, experts recommend heightened caution, diligent research, and scepticism towards guaranteed returns, especially when they come with slick marketing but lack transparency or verifiable trading activity.
As Golden begins his nearly eight-year sentence, the case serves as a stark reminder: in the volatile world of cryptocurrency, promises of easy riches too often end in financial ruin.
