Florida Man Arrested in Alleged $328 Million Crypto Ponzi Scheme
A Florida man faces serious federal charges. Authorities arrested Michael Alan Carroll, 40, of Orlando. He allegedly operated a cryptocurrency Ponzi scheme. This scheme reportedly defrauded investors out of $328 million. The Department of Justice announced Carroll’s arrest on April 17.
Allegations of Extensive Fraud
Carroll allegedly founded a company called Prime Gaming. He also used the name Prime Games. The company launched a game initially called “PRIME: The Game.” It was later simply named “PRIME.” Carroll, known online as “PRIME_Drew” and “PRIME_CEO,” promoted this venture. He sold non-fungible tokens (NFTs) and “prime tokens.” These digital assets were marketed to thousands of investors.
According to court documents, Carroll promised high returns. He claimed these returns came from cryptocurrency trading. He also cited revenue from the game itself. However, investigators allege the operation was a classic Ponzi scheme. New investor funds were used to pay earlier investors. This practice created a false sense of profitability. Victims were located nationwide and internationally.
Details of the Scheme
The scheme allegedly ran from March 2021 to December 2023. Carroll reportedly made lavish personal purchases. He acquired luxury cars and real estate. Millions of dollars were allegedly diverted for his benefit. Investor funds were moved through multiple cryptocurrency exchanges. Various digital wallets were also used to obscure the money’s origin.
Carroll allegedly fabricated financial statements. He also provided misleading information. This was done to maintain the illusion of a successful investment. Furthermore, he encouraged existing investors to recruit new ones. This expanded the reach of the alleged fraud. Many investors lost substantial savings.
Federal Charges and Penalties
Michael Carroll faces three federal charges. These include wire fraud, money laundering, and engaging in monetary transactions in property derived from specified unlawful activity. Each charge carries significant penalties.
Wire fraud carries a maximum sentence of 20 years in prison. Money laundering also carries up to 20 years. The third charge, related to unlawful monetary transactions, could result in 10 years. A federal district court will determine any sentence. The judge considers U.S. Sentencing Guidelines. They also weigh other statutory factors.
Investigating Agencies
Multiple government agencies participated in the investigation. The IRS-Criminal Investigation conducted the primary inquiry. The Federal Bureau of Investigation (FBI) provided assistance. Homeland Security Investigations (HSI) also contributed. These agencies worked together to uncover the alleged fraud. The Commodity Futures Trading Commission (CFTC) filed a civil enforcement action. The Securities and Exchange Commission (SEC) also filed a related civil complaint. These actions seek to recover funds for victims.
This case highlights the risks in unregulated digital asset markets. Investors are urged to exercise caution. They should always conduct thorough due diligence. Scrutinize any investment promising unusually high returns. If something sounds too good to be true, it often is.
