Colorado Man Convicted of Cryptocurrency Theft, Ordered to Pay $2.1 Million in Damages

By Jace Dela Cruz

Jul 08, 2024 05:41 AM EDT

A Colorado man was sentenced after pleading guilty to stealing millions of dollars in cryptocurrency from a woman in Pennsylvania. This conviction is the culmination of a lengthy investigation into a sophisticated financial fraud scheme, according to

Bitcoin Coin Hoodie

(Photo : Tumisu from Pixabay)

Colorado Man Gets Convicted of Crypto Theft

Adam Davis, 47, initially from Coatesville, Pennsylvania, received a 33-month prison sentence from a judge in the Philadelphia area. He will also serve three years of probation and be required to compensate the victim with $2.1 million.

These legal consequences stemmed from Davis's pleading guilty to one count of wire fraud in January. According to US Attorney Jacqueline Romero, a woman in Bucks County entrusted Davis as a financial adviser to manage a $395,000 investment.

From January 2014 to May 2021, Davis had access to the woman's digital portfolios, leading to a devastating loss for the victim.

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'Layering' Method

Adam Davis transferred $2.1 million in cryptocurrency from the victim's accounts throughout this period into his own. He employed a method called "layering," which entails transferring funds through several accounts to conceal their origin. 

The crypto's value increased significantly over time, reaching more than $8 million by January 2021, underscoring the substantial financial damage caused by the theft.

When the victim uncovered the theft, Davis had already used the funds for personal expenses and started a new business.

READ MORE: Hong Kong Cracks Down Fake Crypto Exchange Using Elon Musk Deepfakes to Trick Investors

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