A significant ruling has emerged from the US judicial system, with the CEO of the cryptocurrency trading company, Digital Assets Enterprises (DAE), being handed a 15-year prison term for his role in a sweeping fraudulent scheme. This false investment platform falsely promised high returns through trading in digital currencies, leading to the loss of millions for countless individuals worldwide.
Over 10,000 Ethereum In Digital Assets Enterprises Fraud – DOJ
According to a recent announcement from the Department of Justice, Javier Ortiz, a 50-year-old entrepreneur, masterminded a complex scam through his registered entity, DAE. The DOJ’s statements highlight that as the founder and principal spokesperson, Ortiz promoted the platform as capable of delivering return rates between 1% and 4% daily. However, investigations uncovered that DAE was never engaged in any genuine trading operations to support such high returns.
The fraudulent scheme was active from November 2020 until November 2022. In that timeframe, DAE lured in over 100,000 investors worldwide, who invested upwards of $250 million. This investment included over $40 million in traditional currency and around 10,500 Ethereum, which was valued at approximately $220 million when contributions were made. Despite these inflows, it was determined that payouts to investors primarily relied on funds from new members rather than from productive trading.
To project an illusion of success, Ortiz created an online dashboard that displayed falsified growth in investment accounts. Throughout 2021, this portal consistently showcased rising figures, leading investors to believe their investments were thriving and yielding impressive returns.
Authorities discovered extensive personal misuse of the funds, with Ortiz allegedly spending nearly $5 million on luxury goods, including extravagant cars and high-end jewelry. Convicted of wire fraud and fraudulently laundering money, he is set to serve 15 years in federal prison.
FBI Seeks Compensation for DAE Investors
In related news, the FBI’s Financial Crimes Task Force is actively reaching out to victims who have reported losses due to investments made in DAE between 2020 and 2022.
Following Ortiz’s conviction in early 2026, federal agents are urging affected individuals who believe they have the right to restitution to complete the necessary forms. Currently, the total losses tied to this Ethereum Ponzi scheme are projected to be around $75 million.
