A Grovetown man has been accused in a $1 million scheme that involved selling expensive crypto mining equipment to more than 30 customers who never received their orders.
Steven Drawdy, 39, was indicted in U.S. District Court on one count of wire fraud, according to prosecutors. He’s facing up to 20 years in prison, substantial financial penalties and restitution, and up to three years of supervised release after he gets out of prison. There is no parole in the federal system.
According to the indictment, between August 2021 and April 2022, Drawdy joined an online cryptocurrency forum and found at least 30 victims who gave him up to $1 million for machines capable of mining Bitcoin. Once he received the money, Drawdy disappeared. In some cases, he offered a partial refund in exchange for a fee, but then after he received the fee, he never sent the refund.
“Even though this alleged scheme involves complicated computer technology, at its core this is still just a case of taking money for goods that weren’t provided,” said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia.
Previously, in October 2022, more than a dozen individuals from various states filed a class action lawsuit against Drawdy and his company, Just a Bit of Coin.
“Defendants continue to brag publicly about the profits made from this fraudulent business, frequently posting and bragging about the endeavor on Facebook,” the lawsuit says.
One plaintiff, who paid $230,000, said they were told the parts for the machine were on backorder due to COVID-19 pandemic-related supply issues. But when the plaintiff went to buy the parts directly from the supplier, they had no issues.
The FBI is asking anyone who might have been a victim of the scheme to call 706-722-3702.
