Ex-Rugby Player Shane Moore, Sentenced for $900,000 Crypto Ponzi Scheme
Moore claimed investors' funds would go into crypto mining operations that would bring daily %1 profit, however he diverted a majority of the funds to his personal account to fund his luxury lifestyle.
Shane Moore, a former semi-professional rugby player, was sentenced in the U.S. District Court in Seattle to 30 months in federal prison for operating a $900,000 crypto Ponzi scheme.
Moore, a 37-year-old man, used his ties within the rugby community to defraud over 40 investors across several states, including Washington, Utah, Oregon, Connecticut, and New Jersey.
The $900k Ponzi Scheme by Shane Moore
Shane Moore operated his Ponzi scheme from January 2021 to October 2022. The ex-rugby player deceived his victims by claiming his company, Quantum Donovan LLC, was engaged in profitable cryptocurrency mining operations.
He told the investors that he would use their funds to purchase and operate advanced mining equipment, promising daily returns of 1%. However, Moore had no intention of using the funds for legitimate mining activities. Instead, as is common with every Ponzi scheme, he used money from new investors to pay off earlier investors, while diverting the majority of the funds to his own account.
According to Assistant United States Attorney Brian Wynne, one of the prosecutors in charge of Moore’s case, “Instead of purchasing cryptocurrency mining equipment, Moore commingled victim-investor funds with his accounts and used victim-investor funds to finance his lifestyle and pay his living expenses. … He used victim-investors’ funds to purchase luggage, travel, clothing, electronics, and pay for a deposit for a luxury apartment. All told, victim-investors suffered a loss of more than $387,000.”
U.S. District Judge Tana Lin at the court hearing noted that Moore’s actions caused emotional and mental damage to the victims, beyond just financial harm.
Celebrity Crypto Scams on the Rise
The former rugby Ponzi scheme is among a growing list of cases of crypto investment scams, especially among celebrities. A recent report revealed numerous celebrity-endorsed crypto projects that were rug pulls or Ponzi schemes, resulting in significant losses for investors.
One of the projects was the DADDY token, endorsed by the former professional kickboxer Andrew Tate, which failed after launching for a few months. The MOTHER token, launched by Australian rapper and model Iggy Azalea, also failed to meet expectations.
Nigerian artist Davido (David Adedeji Adeleke) also launched the DAVIDO token, which he profited from by over $470,000, but it tanked just hours after its launch.
