Former semi-professional Rugby Player sentenced to prison for cryptocurrency mining Ponzi scheme

Seattle –A 37-year-old former semi-pro rugby player was sentenced Wednesday in U.S. District Court in Seattle to 30 months in prison for wire fraud, announced Acting U.S. Attorney Teal Luthy Miller. Shane Donovan Moore operated Quantum Donovan LLC – a Washington company Moore claimed was purchasing and operating cryptocurrency mining equipment. In fact, the company never invested in such equipment and operated as a Ponzi scheme, with the investments from later investors being used to pay off earlier investors. At the sentencing hearing U.S. District Judge Tana Lin told him, “Most people have suffered serious trauma like you, but you have also had many opportunities and advantages that many people have not.” Judge Lin also noted Moore “caused emotional and psychological damage to the victims” by his execution of his scheme.

“Mr. Moore used the newness of cryptocurrency, to commit an age-old fraud – a Ponzi scheme,” said Acting U.S. Attorney Miller. “He solicited more than $900,00 from some 40 investors claiming it would be used for ‘mining cryptocurrency.’ Instead, the money went to support a lavish lifestyle, and to pay off the earliest investors to keep the fraud going. He left a path of damaged relationships in his wake.”

Between January 2021 and October 2022, Moore made fraudulent promises to obtain investor money. Moore claimed both verbally and in writing that the invested money would be used to purchase computers for a cryptocurrency mining operation. He told investors they would receive 1% of their investment daily based on the work of the mining machines. However, Moore never purchased the mining machines. He comingled the investor money with his personal accounts and used some of those funds to live a lavish lifestyle. Some of the funds were used to purchase cryptocurrency so that a portion of the funds could be sent to investors to lull them into believing the cryptocurrency mining operation existed. Early investors recruited their friends and family to invest, leading to anger and recriminations when the losses mounted.

Moore recruited investors in Utah, Oregon, Connecticut, New Jersey, and Washington. Many of the investors are people he knew from his rugby activities.

In asking for a three-year prison sentence, Assistant United States Attorney Brian Wynne wrote to the court, “Instead of purchasing cryptocurrency mining equipment, Moore comingled victim-investor funds with his personal accounts and used victim-investor funds to finance his lifestyle and pay his personal 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.”

The case was investigated by the FBI.

The case was prosecuted by Assistant United States Attorneys Brian Wynne and Casey Conzatti.