In a stark reminder of the risks still lurking in the digital finance space, U.S. authorities have brought serious criminal charges against the founder of a blockchain startup accused of orchestrating an elaborate fraud scheme.
Jeremy Jordan-Jones, the man behind Amalgam Capital Ventures, now finds himself at the center of a federal indictment, accused of deceiving investors, banks, and partners by selling a tech dream that never truly existed.
According to a statement released by the U.S. Department of Justice on May 21, Jordan-Jones was arrested and charged with multiple federal crimes: wire fraud, securities fraud, false statements to a financial institution, and aggravated identity theft. The charges stem from a scheme that allegedly ran from January 2021 to November 2022, during which time he is accused of pocketing over $1 million by pretending to run a legitimate blockchain business.
But prosecutors say that Amalgam was anything but legitimate.
Manhattan U.S. Attorney Jay Clayton painted a damning picture of the alleged scam, claiming Jordan-Jones pitched Amalgam as a trailblazing blockchain firm with powerful partnerships and innovative technology. “In reality, the company was a sham,” Clayton said, alleging that investors’ funds were siphoned off to support the founder’s own lavish lifestyle.
The FBI echoed those sentiments, with Assistant Director Christopher Raia describing the operation as a web of “blatant lies” built on fictional claims about Amalgam’s business capabilities, strategic collaborations, and investment goals. According to Raia, the founder’s misrepresentations duped investors and funded luxury travel, high-end shopping, and extravagant dining — far from the blockchain product development investors had expected.
An indictment filed in Manhattan federal court lays out the full extent of the alleged fraud. Jordan-Jones, prosecutors claim, fabricated documents and forged business relationships, including phony partnerships with sports organizations, to make Amalgam seem more legitimate than it was. In reality, the indictment states, the firm had no working technology, barely any clients, and not a single genuine business deal in place.
Amalgam had publicly claimed it was developing blockchain-powered payment systems and secure point-of-sale solutions — a claim that gave it just enough credibility to lure in unsuspecting investors. But according to prosecutors, those promises were empty. Instead of using the funds to build a functioning crypto platform or seek exchange listings, Jordan-Jones allegedly funneled the money into personal luxuries, including expensive vehicles and vacations, with Miami frequently being a favored destination.
One of the more brazen allegations involves a fake bank statement. To secure a corporate credit card, Jordan-Jones allegedly submitted documentation claiming Amalgam had over $18 million in its account — a sum prosecutors say didn’t exist. In fact, the bank account had been closed in late 2021, with a zero balance.
If convicted, Jordan-Jones faces serious prison time. Each count of wire fraud and securities fraud carries a potential sentence of up to 20 years, while making false statements to a bank could bring up to 30 years. Additionally, the aggravated identity theft charge carries a mandatory minimum of two years in prison.
The government has made clear it intends to recover what it can. Prosecutors are seeking forfeiture of any assets acquired through the fraudulent scheme — and if the original funds are no longer available, they’ll go after equivalent substitute assets.
This case joins a growing list of high-profile crypto-related prosecutions, serving as yet another warning that beneath the glossy surface of blockchain innovation, bad actors can still exploit investor enthusiasm for personal gain. As digital finance continues to evolve, regulators and law enforcement are sharpening their focus — and for those pushing false promises, the consequences are becoming very real.
