SPOKANE, Wash. — A Spokane man was sentenced to federal prison for fraud and operating a cryptocurrency scheme.
38-year-old Michael Joseph McElhiney, was sentenced to 41 months in federal prison for defrauding investors of over $350,000 in a cryptocurrency investment scheme.
According to the U.S. Attorney for the Eastern District of Washington, between March 2021 and September 2022, McElhiney falsely claimed to run a successful cryptocurrency fund, MAC Blockchain Solutions, promising returns from investments in emerging cryptocurrencies and blockchain projects.
McElhiney primarily targeted individuals he met through Uber rides, dating apps, and online gaming.
According to U.S. Attorney’s office, instead of investing the funds, McElhiney used the money for personal expenses, including gambling. He fabricated investment reports to deceive victims into believing their investments were growing. When victims sought to withdraw their funds, McElhiney provided false excuses, such as security breaches and delays.
McElhiney was ordered to pay $326,119.95 in restitution and serve three years of supervised release after his prison sentence.
This case was investigated by Homeland Security Investigations and the Spokane Police Department. It was prosecuted by Assistant United States Attorney Dan Fruchter.
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