SPOKANE, Wash. — A Spokane man has been found guilty of stealing $350,000 from investors in a cryptocurrency scheme.
Michael McElhiney, 38, defrauded investors by posing as the operator of a cryptocurrency investment fund called MAC Blockchain Solutions, according to the U.S. Attorney's Office and court documents. This project took place between March 4, 2021 and September 10, 2022. Mr. McElhiney told prospective investors that he and his business partners run a crypto investment fund that has successfully invested in emerging cryptocurrencies, Ethereum staking, and other blockchain-based projects. I promised that I would be there. Cryptocurrency liquidity pool.
Prosecutors said McElhiney typically contacted his victims directly, such as Uber drivers he met during rides or women he met through dating apps. He also met the victim online while playing the video game “Call of Duty” under the username “Bing Bong.” McElhiney often met with victims multiple times and established personal relationships with them before seeking and receiving funds.
Mr. McElhiney invested the victims' funds and promised to manage their investments. He assured them that they could withdraw their funds at any time and that they would receive a guaranteed return on their investment. He provided the information through a platform called Coin.FYI, which appears to track investment progress. However, Mr. McElhiney did not invest the money, instead using it for personal expenses such as casino gambling. The Coin.FYI account he showed investors was fabricated to create the illusion that the investment was growing.
McElhiney defrauded investors of more than $350,000 in cash, rare art and jewelry.
When victims tried to withdraw their investments, Mr. McElhiney falsely claimed that a variety of issues prevented their funds from being returned, including security breaches, his absence from the country, theft, and problems with his payment processing platform.
“Today's verdict is a clear reminder that those who exploit the trust of others through fraudulent schemes will be held accountable,” said Matthew Murphy, acting special agent in charge of HSI Seattle. “This person exploited the allure of digital currencies, defrauding and stealing from countless investors. We remain committed to investigating and prosecuting those who seek to manipulate, and we appreciate the tireless efforts of our law enforcement partners and the U.S. Attorney's Office to bring individuals like McElhiney to justice. ”
Mr. McElhiney was sentenced to 41 months in federal prison, three years of supervised release, and ordered to pay $326,119.95 in restitution.
