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The Ringleader of a Crypto-Ponzi Scheme Arrested After a Flee Attempt

Ring Leader

Mathew Piercey, a Ponzi scheme leader who defrauded $35 million for crypto mining and other investments, has been arrested after a flee attempt. Piercey tried to flee on a sea scooter from the FBI. 

Authorities have apprehended the suspect for operating fraudulent companies that make millions of money from the people to apparently invest in cryptocurrency and life insurance and various other assets. 

Now multiple charges are looking at Piercey including mail fraud, wire fraud, money laundering, etc. in regards to the two investment firms, Family Wealth Legacy and Zolla Financial that illegally operated. Both firms have taken $35 million from various investors since 2015. Wealthy investors and different investment firms were targetted by the firms to invest in cryptocurrency mining, health care investment, and securities. 

According to the Prosecutors, around $8.8 million of the funds were given to the previous investors to show them that the profits are being generated: “Of the remaining net investment of approximately $26 million, few if any liquid assets remain to repay investors.”

If found guilty, Piercey can face a life sentence. This incident shows that wealthy investors can be scammed into investing money in the non-existent crypto investing opportunities. A business verification should be used by major investors and investment firms before dealing with such Ponzi organizations. It is a way of verifying that the businesses are legit and not an illusion trying to take money from people under false pretense.

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