Colorado man pleads guilty to a $2.2M crypto fraud scheme

A man from Colorado pleaded guilty to fraud charges amounting to $2.2 million and faces up to 20 years of imprisonment upon conviction. According to court documents, the 46-year-old Robert Wesley Robb used social media platforms to market his investment idea to unsuspecting investors. 

Also read: Ripple CEO and Chief Legal Officer issue statements on XRP case rumors

Robert’s pitch lured investors into committing as little as $100 and upwards of $200,000 “sitting around,” urging them to send him a direct message (DM) to take advantage of the opportunity. He then convinced the unsuspecting investors to believe that he was developing a Maximum Extractable Value (MEV) crypto trading bot capable of generating high returns on investment.

Robb convinced the victims to send their investments to his crypto wallet, promising them yields as soon as the bot was fully functional. However, he transferred the funds to his cryptocurrency exchange account and proceeded to withdraw the funds to his personal bank accounts. Court documents issued by the United States Attorney’s Office highlighted that an investigation launched on the case revealed that more than 10 investors fell victim to Robb’s scheme and lost their investments.

Colorado man misappropriated investors’ funds 

One particular victim from Brambleton, Virginia invested $100,000 through an Ethereum crypto address that Robert provided. Days later, Robb reportedly lied to the victim that another investor would dilute his gains by investing $300,000, to which the victim sent an additional $50,000 to Robert’s ETH address. After days, the investor reached out to Robb for a refund, likely due to the fact that the Colorado man had not yet paid out any proceeds, to which Robb responded by stating that the bot was “warming up” and would start trading soon. 

Robert Wesley Robb, 46, of Colorado, pled guilty today to wire fraud relating to his scheme to fleece investors through a series of misrepresentations and high-pressure tactics. #FBI #USAO #justicehttps://t.co/ELHd54o2Xj

— U.S. Attorney EDVA (@EDVAnews) June 21, 2024

The Colorado man allegedly misused the funds investors sent to his crypto wallet despite promising investors his MEV bot would be live soon. Bank details presented to the court indicated that Robert used the investors’ funds for personal expenses and luxury purchases. The documents also revealed that he used the funds to fund his expensive trips and vacations. 

Also read: LayerZero Price Rising Following Binance Listing: 5 Other New Crypto Listings to Watch

Robb also reportedly used the money to buy airline tickets and luxury cars. He leased a luxury suit for more than $200,000 at the Denver Broncos’ Mile High Stadium and spent almost $50,000 to fund a vacation for his girlfriend and her family members in the Bahamas. He also purchased a 2023 Jeep Wagoneer for more than $100,000.

The Colorado man’s sentencing is scheduled for October 2nd, and Assistant U.S. Attorneys Zoe Bedell and Katherine E. Rumbaugh are the prosecutors in the case. He faces up to 20 years in prison, but similar sentences for federal crimes usually fetch a lighter penalty than the maximum following U.S. sentencing guidelines.

Cryptopolitan reporting by Collins J. Okoth