New York Man Sentenced for Impersonating Crypto Influencers in Large-Scale Investment Scam

A New York man has been sentenced to federal prison for orchestrating a cryptocurrency investment scam, according to the U.S. Attorney’s Office for the District of Maryland. Noman Saleem, 39, of Queens and Levittown, will serve 15 months in prison and undergo three years of supervised release for his role in defrauding victims, including an individual in Maryland, out of significant sums of money. The scheme involved Saleem impersonating popular online cryptocurrency influencers to lure investors into depositing their digital assets with promises of guaranteed returns.

The fraudulent operation began in December 2020 and continued through at least March 2021. During this period, Saleem created fake online personas, mimicking well-known figures in the cryptocurrency space. He used the messaging application Telegram to promote his scheme, establishing public channels and exclusive, subscription-based VIP channels. Thousands of individuals joined his public channel, with a substantial number subscribing to the VIP channel for approximately 500 to 600 worth of cryptocurrency. Saleem leveraged these platforms to convince potential investors that he was indeed the influencer they followed, offering direct messaging capabilities to VIP members to foster a sense of personal connection and trust. He also created a second Telegram handle, again impersonating another prominent influencer, and offered channel members the opportunity to join his VIP channel.

Saleem’s scam centered on promoting crypto staking and investment opportunities that he claimed would yield substantial, guaranteed returns within specific timeframes of 30 to 90 days. He enticed individuals by suggesting that larger investments would result in even greater profits. However, court documents reveal that Saleem never actually staked any of the cryptocurrency he received. Instead, once victims transferred their digital assets to virtual wallets that Saleem controlled, he would cease all communication and abscond with the funds. The total value of cryptocurrency and U.S. dollars defrauded from victims in this scheme reached at least $1,415,067.14. The government has since recovered a portion of these losses in the form of cryptocurrency and U.S. currency, as outlined in Saleem’s plea agreement.

The nature of cryptocurrency, which is not tied to any national currency, played a role in the complexity of the fraud. Each cryptocurrency owner possesses a pair of encryption keys: a public key, also known as an address, which is visible and used for verifying ownership and facilitating transactions, and a private key, a password-protected secret key typically only shared with the owner, essential for completing transactions. Wallets can hold multiple public keys, and an account can manage multiple wallets. Crypto staking, a process where individuals hold cryptocurrency for a period to earn interest or rewards, often involves participation in pools and can generate passive income ranging from 5 to 20 percent. Saleem exploited the public’s interest in these emerging financial technologies to execute his fraudulent activities.

U.S. Attorney Kelly O. Hayes commended the investigative efforts of the FBI Baltimore Field Office, with Special Agent in Charge Jimmy Paul also acknowledging the work done. Assistant U.S. Attorney Sean R. Delaney led the prosecution of the federal case, with Paralegal Specialist Shelbe Mascaro providing significant assistance. Individuals who believe they may be victims of investment fraud or other financial crimes are encouraged to consult resources available through the U.S. Attorney’s Office for the District of Maryland website at justice.gov/usao-md. The case highlights the ongoing risks associated with online investment schemes and the importance of due diligence when considering digital asset investments.

Article by Mel Anara, based upon information from the U.S. Attorney’s Office, District of Maryland.

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