Feds Charge Amalgam Founder with Stealing $1M via ‘Sham’ Blockchain

A U.S. grand jury has indicted Jeremy Jordan-Jones, founder of blockchain startup Amalgam Capital Ventures, for allegedly defrauding investors out of more than $1 million with a fake blockchain operation.

Jordan-Jones was arrested and charged on May 21 with wire fraud, securities fraud, making false statements to a bank, and aggravated identity theft, according to the Department of Justice.

Manhattan U.S. Attorney Jay Clayton stated that Jordan-Jones promoted Amalgam as a revolutionary blockchain startup, but in reality, “the company was a sham,” and the investors’ money was used to fund his lavish lifestyle.

FBI Assistant Director Christopher Raia said the scheme defrauded investors through false claims about Amalgam’s technology, partnerships, and investment strategies. He labeled Jordan-Jones’ conduct as “blatant lies” designed to support personal extravagance.

Fake Tech, Real Theft

As detailed in a federal indictment filed in Manhattan, from January 2021 to November 2022, Jordan-Jones engaged in a scheme involving forged documents, fake sports endorsements, and misleading pitches, ultimately diverting over $1 million for personal use.

Amalgam purported to deliver point-of-sale systems and blockchain-based payment and security solutions, but according to prosecutors, it had no real products, few or no customers, and zero legitimate partnerships.

Rather than investing in promised technology development and crypto exchange listings, the funds were allegedly spent on luxury vehicles, high-end vacations, designer clothes, and fine dining in Miami.

Long Prison Sentences Loom

Jordan-Jones also allegedly submitted a falsified bank statement, claiming Amalgam had over $18 million, in order to acquire a business credit card. Authorities say the bank account was actually closed in late 2021 and held no funds.

Wire and securities fraud can be punished with up to 20 years in prison and the false bank statement charge can result in a 30-year sentence. Someone convicted of aggravated identity theft must serve at least two years in prison.

To stop the use of unlawful funds, the government is seizing assets related to fraud and using substitutes if the real funds are not available.

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