The founder of the blockchain startup Amalgam Capital Ventures has been accused of stealing over $1 million from investors through false advertising.

Techub News reports that, according to Cointelegraph, the U.S. Department of Justice announced that Jeremy Jordan-Jones, the founder of the blockchain startup Amalgam Capital Ventures, was arrested on May 21 and charged with telecommunications fraud, securities fraud, making false statements to banks, and aggravated identity theft.

Manhattan Prosecutor Jay Clayton claimed that Jones "touted his company as a groundbreaking blockchain startup," when in reality, the company was "a fake company where investors' money was siphoned off to fund its lavish lifestyle." FBI Assistant Director Christopher Raia said Jones defrauded investors of more than $1 million by "misrepresenting his alleged capabilities, partnerships, and investment intentions."

The government is demanding the forfeiture of any property or money that can be traced back to fraud, including the forfeiture of alternative assets where access to the original funds is not available. Among the above counts, wire fraud and security fraud are punishable by up to 20 years in prison, providing false statements to a bank is punishable by up to 30 years in prison, and identity theft is punishable by up to 2 years in prison.