Cryptocurrency Mining Ponzi Scheme Leads to 30-Month Prison Sentence for Former Rugby Player

Seattle, July 17, 2025 — Shane Donovan Moore, a 37-year-old former semi-professional rugby player from Seattle, was sentenced today to 30 months in federal prison for orchestrating a fraudulent cryptocurrency mining Ponzi scheme. The sentencing, handed down in U.S. District Court, underscores the persistent risks of deception within the rapidly evolving crypto industry and highlights the importance of regulatory vigilance and investor caution.

The Scheme Unveiled

Moore operated under the guise of Quantum Donovan LLC, a company he claimed was engaged in cryptocurrency mining operations. Investors were lured by promises of daily returns of 1% on their principal—a yield purportedly generated by mining profits from expensive computer hardware.

However, prosecutors revealed that Moore never purchased any mining equipment. Instead, he collected more than $900,000 from roughly 40 investors between January 2021 and October 2022 and funneled the funds into personal accounts. These monies financed an extravagant lifestyle, including luxury travel, high-end electronics, designer clothing, and a substantial deposit on a luxury apartment.

To maintain the illusion of legitimate mining activity, Moore used a portion of the funds to purchase cryptocurrencies, which were then distributed to earlier investors as “returns.” This tactic persuaded initial investors to recruit friends and family, amplifying the scheme’s reach and eventual impact.

Judicial Findings and Sentencing

At the sentencing hearing, U.S. District Judge Tana Lin condemned Moore’s actions, stating, “Most people have suffered serious trauma like you, but you have also had many opportunities and advantages that many people have not.” She emphasized the emotional and psychological harm inflicted on the victims, many of whom trusted Moore personally or through close networks.

Assistant U.S. Attorney Brian Wynne, advocating for a three-year sentence, detailed the extent of the losses: “Victim-investors suffered a loss of more than $387,000. Instead of purchasing cryptocurrency mining equipment, Moore commingled funds with his personal accounts and used them to finance his lifestyle and pay earlier investors to sustain the fraud.”

Prosecutors characterized the scheme as a textbook Ponzi fraud exploiting the novelty and enthusiasm surrounding cryptocurrency investments.

Broader Implications for the Crypto Industry

This case adds to a growing list of crypto-related fraud prosecutions, illustrating how bad actors exploit the complexity and novelty of digital assets to deceive investors. Despite the maturation of cryptocurrency markets—with recent bipartisan legislative efforts in Congress to establish regulatory guardrails for stablecoins and digital assets—the risk of scams remains significant.

Recent legislative moves, such as the GENIUS Act passed by the U.S. House, aim to create clearer regulatory frameworks. However, enforcement remains a critical pillar in protecting investors from schemes like Moore’s Quantum Donovan LLC.

Acting U.S. Attorney Teal Luthy Miller stated, “Moore used the newness of cryptocurrency to commit an age-old fraud—a Ponzi scheme. This sentencing reflects our commitment to holding fraudsters accountable and protecting investors in emerging markets.”

Investor Takeaways: Vigilance and Education Are Key

For investors drawn to the lucrative promises of cryptocurrency, this case is a stark reminder to exercise caution:

• Verify Claims: Legitimate mining operations typically have verifiable infrastructure and transparent reporting.
• Understand Returns: Promises of unusually high and consistent returns, especially daily payouts, should raise red flags.
• Check Regulatory Status: Confirm if companies and investment offerings comply with relevant financial regulations.
• Be Wary of Recruitment Pressure: Pyramid or Ponzi schemes often rely on personal networks for growth.
• Seek Professional Advice: Consult financial and legal experts before committing significant capital.

Efforts to foster investor education and enhance regulatory clarity continue to be paramount as digital assets further integrate into the mainstream financial system.

References

• U.S. Department of Justice, Former Semi-Professional Rugby Player Sentenced to Prison for Cryptocurrency Mining Ponzi Scheme (July 17, 2025)
• Recent U.S. legislative developments on cryptocurrency regulation (CNN)

In Summary: The sentencing of Shane Donovan Moore for orchestrating a cryptocurrency mining Ponzi scheme exposes the ongoing vulnerability of investors to fraudulent schemes in the digital asset space. While regulatory frameworks evolve to bring legitimacy and protections, the case reinforces that individual vigilance and legal enforcement remain fundamental to safeguarding the integrity of cryptocurrency markets.