Michael Joseph McElhiney Sentenced to 41 Months in Federal Prison for Orchestrating Cryptocurrency Scam

The case highlights the dangers of fraudulent schemes in the digital age.

Michael Joseph McElhiney, a 38-year-old originally from Spokane, Washington, has been sentenced to 41 months in federal prison for orchestrating a cryptocurrency scam that defrauded investors out of hundreds of thousands of dollars.

According to court documents, McElhiney operated a fraudulent company called MAC Blockchain Solutions from March 2021 until September 2022. He approached potential investors through various means, including Uber rides, dating apps, and even during online gaming sessions under the alias "Bing Bong."

McElhiney gained his victims' trust by posing as a successful cryptocurrency investor and promising high returns on their investments. He specifically targeted investors interested in emerging cryptocurrencies and blockchain projects, such as Ethereum staking.

To make his scam more believable, McElhiney used a fake identity and forged credentials. He also created a website for MAC Blockchain Solutions and used the site Coin.FYI to fabricate positive investment updates.

Despite promising flexible withdrawal options, McElhiney never actually invested the funds he collected from his victims. Instead, he used the money for personal indulgences, such as gambling.

In total, McElhiney defrauded his victims of over $350,000, even accepting rare art and precious metals as payment. When investors demanded their funds, he concocted elaborate excuses to delay repayments.

The fraud was eventually uncovered by Homeland Security Investigations and the Spokane Police Department. McElhiney pleaded guilty to one count of wire fraud in December 2022.

In addition to the prison sentence, McElhiney was also ordered to pay restitution to his victims and to forfeit the proceeds of his crime, which included a 2022 Ford Bronco.