BTC $71,807
2026 Bull Run Is Building Start trading with 5% OFF all fees
Sign Up Now
BTC $71,807
Bull Run 2026 | 5% Off Fees Open your Binance account today
Sign Up

Steve Chen, Gem Coin and The 147 Million Fraud

The CEO who deceived more than 72,000 people and stole 147 million dollars

The notorious California CEO who defrauded his investors and embezzled $147 million dollars in an international cryptocurrency scam was recently sentenced to 10 years in prison – according to the federal prosecutor’s office.

- Advertisement -

Steve Chen, 63, managed to deceive 72,000 investors across the world by pretending that his company, US Fine Investment Arts, mined precious metals in non-existent mines he said he owned in the US, Mexico, Argentina, and elsewhere.

The prosecution alleges that Chen was selling investors rights to shares worth $1,000-30,000 apiece, saying his company was ready to go public.

Chen later spoke to his victims of an also fake cryptocurrency, Gem Coin, which he claimed would throw into the market and take ahead at the competition, as it had all the gems back to support its value.

Chen managed between July 2013 and September 2015 to defraud tens of thousands of investors with such knitwear.

“As the main plan was to recruit more investors, rather than sell US Fine Investment Arts’s products to the retail trade, the vast majority of investors were destined to lose money, making Chen very wealthy,”

– prosecutions office
- Advertisement -

His company offered cash, travel, cars and even houses in Los Angeles to every investor who brought more people to the pyramid he had set up.

As for the cryptocurrency, “it was not in circulation in any industry, nor was it ever accepted by any trader, it had no economic value,” the prosecution office noted.

Chen pleaded guilty last June and was forced to pay more than $1.8 million in res. dollars in damages.

Previous Articles:

- Advertisement -
Ad
Altseason Is Loading. Don't watch from the sidelines.
SOL $90.51
DOGE $0.0963
LINK $9.02
SUI $1.00
5% off fees when you sign up
Start Trading
Ad
Pay Less on Every Trade. For Life.
$10K/mo volume Save $60/yr
$50K/mo volume Save $300/yr
$100K/mo volume Save $600/yr
5% off all trading fees when you sign up
Claim Your Discount

Latest News

Binance.US seeks CFTC license for prediction markets

Binance.US will apply for a Designated Contract Market (DCM) license from the CFTC in...

Rails critical Active Storage bug lets attackers read files remotely

Ruby on Rails patched a critical Active Storage vulnerability, CVE-2026-66066 (CVSS 9.5), allowing unauthenticated...

AI Credit Default Swaps Surge, Nvidia Protection Cost Doubles

Demand for credit default swaps (CDS) on mega-cap AI stocks has surged, with NVIDIA's...

Binance launches USDT-settled gold and silver options via ADGM

Binance launches USDT-settled options on Gold and silver through its Abu Dhabi-regulated exchange.Retail users...

RufRoot vulnerability allows unauthenticated RCE in Ruflo

A maximum-severity vulnerability (CVE-2026-59726, CVSS 10.0) in the open-source AI agent platform Ruflo allows...

Must Read

The Ultimate Guide on How to Understand a Cryptocurrency White Paper

Today, cryptocurrency is a popular buzzword. We hear about it on the news, we read about it on the Internet. Yet, people are reluctant to...
Ad
Altseason Is Loading. These 4 coins are trending right now.
SOL $92.12
DOGE $0.0950
LINK $9.02
SUI $1.02
5% off spot fees when you sign up
Start Trading