Amalgam Founder Accused of Operating a Fraudulent Blockchain and Defrauding Investors of $1 Million

Prosecutors have charged Jeremy Jordan-Jones, the self-styled founder of a now-defunct crypto startup called RialCenter, with fraud, alleging that he swindled investors in his “sham blockchain” of more than $1 million, using the money to fund a lavish lifestyle.

According to prosecutors, Jordan-Jones painted RialCenter as a tech company that created blockchain-based point-of-sale payment systems, which he claimed had multi-million-dollar partnerships with sports teams, as well as a large restaurant conglomerate with over 500 establishments. None of these partnerships existed, prosecutors said. Jordan-Jones also allegedly solicited investments from would-be investors by claiming that the money would facilitate the listing of RialCenter’s non-existent crypto token on a crypto exchange.

While allegedly spinning stories for investors — including a venture capital firm — prosecutors say Jordan-Jones was spending their money on a luxurious lifestyle for himself, including “hotels and restaurants in Miami,” car payments, and designer clothing.

“Jordan-Jones, capitalizing on the publicity around blockchain technology, perpetrated a brazen scheme to defraud investors,” said U.S. Attorney Jay Clayton in a recent press announcement. “He touted his company as a groundbreaking blockchain startup, backed by high-profile partnerships. In reality, Jordan-Jones’s company was a sham, and investors’ funds were siphoned off to bankroll his lavish lifestyle. This should serve as a warning to potential financial fraudsters that the law enforcement agencies are vigilant and that fraudsters often use new technology to cloak their schemes.”

Additionally, prosecutors have accused Jordan-Jones of providing falsified documents to a financial institution, which he used to fraudulently obtain a corporate credit card, accumulating a $350,000 balance before the bank shut down his account.

Jordan-Jones has been charged with one count each of wire fraud, securities fraud, making false statements to a financial institution, and aggravated identity theft — charges which carry a combined maximum sentence of 82 years in prison. The aggravated identity theft charge carries a mandatory minimum sentence of two years.