On December 11, 2024, Michael Joseph McElhiney was sentenced to 41 months in federal prison by United States District Judge Thomas O. Rice for defrauding investors in a cryptocurrency scheme. The court also imposed three years of supervised release and ordered restitution of $326,119.95. McElhiney was immediately taken into custody by the United States Marshals Service.
McElhiney, aged 38 and formerly from Spokane, Washington, operated under the guise of a cryptocurrency investment fund called MAC Blockchain Solutions between March 2021 and September 2022. He falsely claimed to invest in emerging cryptocurrencies and blockchain projects like Ethereum staking.
The fraudulent activities involved soliciting funds from individuals he met personally or online, including Uber drivers and women from dating apps. He also used the video game "Call of Duty" with the username "Bing Bong" to connect with potential victims. McElhiney promised returns on investments and assured liquidity but never invested the funds as claimed. Instead, he used them for personal expenses such as gambling.
To maintain the illusion of legitimacy, McElhiney provided fabricated investment updates through Coin.FYI accounts that did not correspond to any real investments. His deceit resulted in over $350,000 being defrauded from investors in cash, rare art, and precious metals.
When investors attempted to withdraw their assets, McElhiney continued his deception by citing various false reasons for delays such as security breaches or being out of the country.
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 Homeland Security Investigations (HSI) and Spokane Police Department investigators who uncovered the scheme.
Matthew Murphy, acting Special Agent in Charge at 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."
The case was prosecuted by Assistant United States Attorney Dan Fruchter following an investigation by Homeland Security Investigations and the Spokane Police Department.