The founder of the cryptocurrency entity Wolf Capital Crypto Trading LLC (Wolf Capital) has pleaded guilty to actions that led to the loss of $9 million to investors.
Travis Ford acted as the co-founder, CEO, and Head Trader of Wolf Capital and drove investments mainly in the period between January 2023 and August 2023.
The U.S. Postal Inspection Service (USPIS) led the investigation into Wolf Capital and Ford. Ford’s guilty plea was announced by Principal Deputy Assistant Attorney General Brent Wible, head of the Justice Department’s Criminal Division, and Inspector in Charge Eric Shen of the USPIS.
Wolf Capital head pleads guilty to $9M investment fraud
During this time, Ford reportedly “solicited investments” via Wolf Capital’s website and other social media and internet-based advertising.
According to the Justice Department, Ford presented himself as “a sophisticated trader able to deliver high returns of 1-2% per day (approximately 547% per year).”
As part of the USPIS investigation and questioning of Ford, he has now admitted that it was impossible to guarantee these returns. He is on record saying, “he did not believe those promised investment returns were possible to achieve consistently.”
Wolf Capital was used as a trojan horse to get to the investment monies that would be siphoned from eager entrants to the crypto market who believed in his advertised return of investment claims.
The Justice Department further reported that Ford “misappropriated and diverted investor funds to benefit himself and his co-conspirators, to the financial detriment of investors. In total, Wolf Capital raised $9.4 million from approximately 2,800 investors through fraudulent conduct.”
He has pleaded guilty to one count of conspiracy to commit wire fraud, which carries a maximum penalty of five years in prison. It remains to be seen how much of a custodial sentence Ford will face, but a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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