Amalgam Founder Charged With Running ‘Sham Blockchain’, Taking $1M From Investors

Jeremy Jordan-Jones, the self-proclaimed founder of the defunct cryptocurrency startup Amalgam, faces multiple fraud charges. Prosecutors allege he defrauded investors of over $1 million, using the funds to support an extravagant lifestyle.

The indictment portrays Amalgam as a fraudulent enterprise. Jordan-Jones allegedly presented Amalgam as a technologically advanced company developing blockchain-based point-of-sale systems, falsely claiming multi-million dollar partnerships with prominent organizations. These purported partnerships included the Golden State Warriors, a Premier League soccer team, and a large restaurant group with over 500 locations. Prosecutors assert that none of these partnerships were legitimate.

To attract investment, Jordan-Jones reportedly promised investors that their funds would facilitate the listing of Amalgam’s non-existent cryptocurrency token on a major exchange. Investment solicitation materials included misleading claims about the company’s technological capabilities and market potential. A 2022 Forbes article mentions Brown Venture Group as one of the firms that invested in Amalgam.

Instead of using the investment funds for the purported business purposes, prosecutors contend that Jordan-Jones used the money for personal enrichment. His alleged lavish spending included stays at Miami hotels and restaurants, car payments, and designer clothing purchases.

U.S. Attorney Jay Clayton stated that Jordan-Jones’s actions represent a blatant scheme to defraud investors, exploiting the publicity surrounding blockchain technology to mask his fraudulent activities. The prosecution emphasizes that Jordan-Jones’s company was a sham, and investor funds were diverted to fund his personal lifestyle.

Further allegations include providing falsified documents to a financial institution to obtain a corporate credit card. Jordan-Jones allegedly accumulated a $350,000 balance on this card before the bank closed the account.

The charges against Jordan-Jones include wire fraud, securities fraud, making false statements to a financial institution, and aggravated identity theft. These charges carry a maximum combined sentence of 82 years in prison, with a mandatory minimum of two years for the aggravated identity theft charge. The case serves as a cautionary tale regarding investment fraud and the potential misuse of emerging technologies to conceal illicit activities.