U.S. Attorney Vanessa R. Waldref | U.S. Department of Justice
On December 11, 2024, Michael Joseph McElhiney was sentenced to 41 months in federal prison by United States District Judge Thomas O. Rice for his involvement in a cryptocurrency investment scheme that defrauded investors of over $350,000. In addition to the prison sentence, McElhiney received three years of supervised release and was ordered to pay $326,119.95 in restitution. He was immediately taken into custody by the United States Marshals Service.
Court documents revealed that McElhiney operated under the guise of MAC Blockchain Solutions between March 2021 and September 2022. He falsely claimed to run a successful cryptocurrency investment fund with partners, focusing on emerging cryptocurrencies and blockchain projects like Ethereum staking.
McElhiney approached victims personally, including Uber drivers he met during rides and women from dating apps. He also connected with individuals online through the video game "Call of Duty" using the username "Bing Bong." After establishing relationships with these individuals, he solicited funds under false pretenses.
Promising management and returns on investments, McElhiney assured investors they could withdraw their money at any time. However, instead of investing these funds, he used them for personal expenses such as gambling at casinos. The Coin.FYI platform information provided to investors was fabricated.
The scheme resulted in losses exceeding $350,000 for investors who contributed cash as well as rare art and precious metals. When victims attempted to retrieve their assets, McElhiney continued to deceive them with various excuses related to security breaches and processing delays.
U.S. Attorney Waldref expressed sympathy for the victims: “Investors...expected a safe return on their investment. Instead, Mr. McElhiney stole their money.” Waldref commended investigators from Homeland Security Investigations (HSI) and the Spokane Police Department for uncovering the fraud.
Matthew Murphy from HSI Seattle stated: "Today’s sentencing serves as a clear reminder that those who prey on the trust of others through fraudulent schemes will be held accountable.” He emphasized HSI's commitment to prosecuting such crimes regardless of technology used.
The case was investigated by Homeland Security Investigations and the Spokane Police Department and prosecuted by Assistant United States Attorney Dan Fruchter.
