Silver Miller, a cryptocurrency investor law firm based in the United States, has reportedly filed a lawsuit against a cryptocurrency investor called Jeremy Spence, who it alleges was running a crypto Ponzi scheme and defrauding investors.

According to a recently published press release, the lawsuit claims Spence was running an organization called Coin Signals, which managed to get investors on board after Spence himself attracted clients via Telegram and Discord, claiming he was a prominent cryptocurrency trader.

Through Coin Signals, Spence promised sizeable returns through a set of hedge funds he was allegedly managing. Instead, he was allegedly running a Ponzi scheme and defrauding investors The press release reads:

The lawsuit, styled Lagemann, et al. v. Spence, et al., U.S. Dist. Ct. – SDNY – Case No. 1:18-cv-12218, pleads that the Court rescind the investments in the fraudulent Coin Signals funds; return to the investors their cryptocurrency; impose a monetary penalty against Spence and his collaborators for their fraud, and impose a constructive trust over the assets collected by Spence.

Through his scheme, Spence reportedly managed to make a large sum of money, as at its highest point Coin Signals claimed to be managing over $5 million worth of assets. Notably, as CryptoGlobe covered, Silver Miller has in the past sued AT&T over a cryptocurrency-related “SIM swap” fraud.

Per the press release, the law firm has been working to defend consumers in the cryptocurrency space, as it has taken on cases that didn’t just involve fraud, but also illegal activities, and trading platforms.

Currently, Silver Millar has actions pending against the alleged Ponzi scheme BitConnect – which collapsed this year – as well as prominent crypto exchanges Coinbase and Kraken. Per the release, it also has lawsuits against initial coin offering (ICO) projects Tezos and Monkey Capital, which promoted their projects before they were functional.

Cryptocurrency fraud is a problem that has been haunting the industry. As CryptoGlobe covered, earlier this year British authorities warned that victims lost over $2.55 million between June and July to fraudsters using crypto-related schemes.

To stay safe, authorities noted victims shouldn’t assume investment schemes they’re suggested are genuine, even if their websites look professional and those suggesting the investments are well-known in the community.

Moreover, victim’s shouldn’t be rushed to make a decision, as legitimate organizations won’t pressure people to invest in their products or services.