Ex-Rugby Player Sentenced for Crypto Ponzi Scheme

Moore’s fraudulent activities highlight ongoing vulnerabilities in cryptocurrency-based investments, particularly those targeting non-institutional investors.

Shane Donovan Moore, operating as the main principal of Quantum Donovan LLC, used personal connections in the rugby community to conduct the scheme. He promised high returns from crypto mining investments.

Moore collected more than $900,000 from over 40 individuals, assuring investments in crypto mining hardware. However, evidence indicated money was diverted for Ponzi-like payouts, with losses exceeding $387,000.

The victims, many of whom were friends and associates, suffered both financial and emotional damages. US District Judge Tana Lin emphasized the emotional impact alongside monetary losses.

“He caused emotional and psychological damage to the victims in addition to financial losses.” — Tana Lin, US District Judge

No on-chain movements were noted, and no specific cryptocurrencies or tokens were involved as all transactions were fiat-based. The scheme bypassed any integration with major decentralized finance protocols.

The U.S. Department of Justice noted Moore’s misuse of recent cryptocurrency hype to execute the scheme.

“Mr. Moore used the newness of cryptocurrency to commit an age-old fraud — a Ponzi scheme.” — Teal Luthy Miller, Acting US Attorney

Though not the first, Moore’s case underscores recurring risks in the cryptocurrency investment sector, particularly in individual-focused scams.