Journalist
Hassan Shittu
Journalist
Hassan Shittu
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A former semi-professional rugby player from Seattle has been sentenced to 30 months in federal prison for operating a $900,000 cryptocurrency Ponzi scheme that defrauded over 40 investors across the U.S.
Shane Donovan Moore, 37, was sentenced Wednesday in U.S. District Court in Seattle after pleading guilty to wire fraud.
The sentencing follows an investigation by the FBI into Moore’s company, Quantum Donovan LLC, which he claimed was a legitimate cryptocurrency mining operation. Prosecutors say the company was never real.
Crypto Ponzi Scheme Leaves Friends, Teammates Betrayed as Judge Sentences Former Athlete
Between January 2021 and October 2022, Moore pitched the venture to investors in Washington, Oregon, Utah, Connecticut, and New Jersey. Many of them were friends, former teammates, and acquaintances from his rugby career.
Moore claimed the money would be used to purchase and operate cryptocurrency mining machines, offering investors a daily return of 1% from the supposed profits.
But according to prosecutors, no such equipment was ever bought. Instead, Moore used the funds for personal expenses, including travel, luxury goods, electronics, clothing, and a deposit on a high-end apartment.
“Mr. Moore used the newness of cryptocurrency to commit an age-old fraud—a Ponzi scheme,” said Acting U.S. Attorney Teal Luthy Miller. “He left a path of damaged relationships in his wake.”
He also used some of the money to buy cryptocurrency, not for mining but to make small payouts to early investors. Prosecutors say this was done to create the illusion that the operation was working.
Some of those early investors, convinced by Moore’s story, encouraged their friends and family to get involved. That only made the fallout worse when the truth surfaced.
According to prosecutors, while Moore raised more than $900,000, the actual loss to investors stood at just over $387,000 after some early payments.
During the sentencing hearing, U.S. District Judge Tana Lin acknowledged Moore’s difficult personal history, including trauma, but emphasized that his choices caused real harm.
The judge said Moore’s actions inflicted not only financial losses but also “emotional and psychological damage” on his victims. Moore will serve 30 months in prison, followed by three years of supervised release. A restitution order is expected to follow.
FBI Warns of Soaring Crypto Scams as Experts Blame User Errors for Billions Lost
As cryptocurrencies continued their march into the financial mainstream in 2024, fraud surged alongside adoption, with the FBI reporting over $9.3 billion in crypto-related losses, a 66% jump from the $5.6 billion recorded in 2023.
According to the FBI’s Internet Crime Complaint Center (IC3), more than 149,000 complaints were filed last year, with over 50% of total crypto losses linked to investment scams.
The Bureau said it notified over 4,300 victims, helping prevent an estimated $285 million in further losses. In a worrying statistic, 42 individuals were referred to FBI victim specialists for suicide intervention related to crypto fraud.
The fraud wave has continued into 2025. Chainalysis’ Mid-Year Crypto Crime Report shows $2.17 billion in crypto has already been stolen, surpassing all of 2024.
Speaking to CryptoNews, Crystal CEO Navin Gupta said most scams could be prevented by changing user behavior. “Eighty percent of scams could be avoided by assuming every unsolicited message is a potential attack,” he said.
Gupta pointed to common patterns: overtrusting polished dApps, sharing private keys in insecure environments, and weak security controls like single-signature approvals. “It’s usually human error that opens the door, and poor architecture widens it,” he explained.
He urged users to adopt a mindset of “deliberate doubt,” especially when faced with urgency, secrecy, or flattery. “The crypto space moves fast, but your money doesn’t have to,” he said. “Taking a few extra minutes to verify a request could save everything you’ve built.”
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