86-Year-Old Man Ordered to Pay $14M for Crypto Ponzi Scheme

An 86-year-old man from California, David Cagle, has been ordered to pay nearly $14 million after orchestrating a cryptocurrency Ponzi scheme that defrauded numerous victims. Cagle, along with two accomplices, operated the scheme from December 2017 to June 2022, promising investors high, risk-free returns by utilizing a trading bot. Victims were lured with the enticing assurance of net profits ranging from 20% to 100% within just 30 days of their investment.

The fraudulent operation exploited the growing interest in cryptocurrency, misleading individuals into believing they were making sound financial decisions. Instead, their investments were used to pay earlier investors, a hallmark of Ponzi schemes.

In addition to the hefty financial penalty, Cagle has been sentenced to five years of probation. Currently residing in a nursing home, he faces the consequences of his actions as authorities continue to crack down on fraudulent schemes in the cryptocurrency space.

This case highlights ongoing concerns regarding investment scams, particularly those involving emerging technologies like cryptocurrency. As regulators strive to protect investors, it serves as a stark reminder for individuals to exercise caution and conduct thorough research before committing their funds to high-return investment opportunities.