Alleged crypto-Ponzi operator arrested after failed sea-scooter escape

Matthew Piercey, the accused operator of two fraudulent firms that solicited tens of millions to ostensibly invest in cryptocurrency mining, life insurance and other assets, has been apprehended by authorities after a failed attempt to escape FBI agents using a sea scooter.

Piercey then spent roughly 25 minutes in the lake while being pulled underwater using a sea scooter - a water-propelled device that helps divers move underwater at speeds of up to 4 miles per hour.

Piercey now faces multiple charges of wire fraud, mail fraud, money laundering and witness-tampering in relation to the operations of his investment firms Family Wealth Legacy LLC and Zolla Financial LLC. The two firms are believed to have received $35 million from investors since 2015 for "Investment products" including cryptocurrency mining schemes, health care investments and securities.

The firms targeted wealthy investors, with minimum investments capped at $50,000.

Piercey allegedly admitted to an associate that his companies' "Upvesting Fund" did not exist.

Further, the accused Ponzi operator is believed to have little understanding of cryptocurrencies apart from using the term as a buzzword.

Piercey is believed to have spent $2.5 million renovating two homes and on credit card bills.

His accused accomplice, Kenneth Winton is also believed to have spent $1 million of the funds on a houseboat.

"Of the remaining net investment of approximately $26 million, few if any liquid assets remain to repay investors.'".

The incident underlines how easy it is for even wealthy investors to lose money on nonexistent crypto "Investment opportunities."