A crypto Ponzi scheme, “QuantumProfit,” lured global investors with promises of 20% monthly returns. The platform collapsed abruptly, causing $10 million in losses. The mastermind, Ethan Caldwell, used offshore shell companies and fake identities to conceal his operation.
In 2021, over 500 investors worldwide, including retirees Sarah and Michael Thompson, London-based Raj Patel, and San Francisco tech worker Linda Chen, invested in QuantumProfit. The platform, promoted through polished social media campaigns and fabricated testimonials, claimed to use AI-powered crypto arbitrage for guaranteed profits. Ethan Caldwell, operating under a stolen identity, portrayed himself as a Stanford-educated blockchain pioneer. He built credibility using paid influencers and a fake “leadership team” (stock photos with aliases like “Claire Bennett” and “Marcus Roe”).
Caldwell funneled funds through shell companies in the Cayman Islands and Dubai, paying early investors with new deposits—a classic Ponzi structure. Red flags emerged in early 2023 when withdrawals were delayed, and the platform cited “regulatory audits.” By June 2023, QuantumProfit’s website vanished, and Caldwell’s team disappeared.
Victims like Linda Chen lost 250,000,herlifesavings,whiletheThompsonslost120,000 meant for their grandchildren’s education. Raj Patel lost $80,000, crippling his restaurant business.
- Blockchain Forensics: Traced $4.2 million to wallets linked to Caldwell’s Dubai shell company, Stellar Holdings LLC.
- International Collaboration: Partnered with Europol and UAE authorities to freeze accounts in Zurich and Dubai.
- Identity Unmasking: Uncovered Caldwell’s real identity—a convicted fraudster named Derek Voss—using metadata from his fake team’s promotional videos.
- Victim Advocacy: Provided psychological support and legal resources for traumatized investors.
- $6.5 million recovered and returned to victims via a court-appointed Derek Voss (Ethan Caldwell) arrested in Panama City in October 2023 and extradited to the U.S. to face wire fraud and money laundering charges.
- Shell networks dismantled in the UAE and Cayman Islands.