Crypto Investment Firm Founder Pleads Guilty to Defrauding Thousands of Investors of Over $9M in Ponzi Scheme

On January 10, 2025, Travis Ford, the co-founder and CEO of Wolf Capital Crypto Trading LLC, pleaded guilty to conspiracy to commit wire fraud in the U.S. District Court for the Northern District of Oklahoma. The fraudulent scheme revolved around Ford's operation of Wolf Capital, which was promoted as a high-yield cryptocurrency investment firm. The company promised potential investors impressive daily returns of 1–2%, translating to a staggering 547% annually, claiming their funds were managed safely and profitably.

This case was investigated and prosecuted by the United States Postal Inspection Service (USPIS) and the US Department of Justice Fraud section respectively. TRM Labs is proud to support USPIS and DOJ fraud in their work.

Between January 2023 and August 2023, Ford and his co-conspirators solicited investments from approximately 2,800 individuals, amassing a total of USD 9.4 million. The marketing strategy for Wolf Capital relied heavily on platforms like Discord and Telegram, where they engaged potential investors with enticing returns and reassurances about the legitimacy of their operations.

Despite public claims that the investment funds were secure, Ford knowingly misrepresented the company's financial status and concealed substantial trading losses. While portraying the business as a success, he diverted investor funds to personal accounts for unauthorized purposes, including covering personal expenses. Internal communications revealed Ford's acknowledgment of the firm's failing state even as he continued to solicit investments from unsuspecting individuals.

In August 2023, Ford confessed to the losses and announced the closure of Wolf Capital, leaving thousands of investors defrauded. Investigations revealed that investor funds were funneled through wire transfers to cryptocurrency trading platforms and wallets but were not used as advertised. Instead, they were redirected for other purposes, including Ford’s personal gain.

As part of his guilty plea, Ford agreed to forfeit assets, including a monetary judgment of at least USD 1,039,128.45, which represents the proceeds of the fraud. His sentencing, which could result in significant prison time, will determine the final penalty. The case underscores law enforcements’ and DOJ Fraud’s focus on combating cryptocurrency fraud and protecting investors from predatory schemes.