Gemcoin
Summary
Gemcoin was a fraudulent cryptocurrency launched in September 2014 by Steve Chen through his company US Fine Investment Arts (USFIA), operating out of Arcadia, California. The scheme falsely claimed that Gemcoin tokens were backed by billions of dollars in amber and gemstone mine holdings in the Dominican Republic, Argentina, Mexico, and the United States; those mines did not exist. The SEC filed fraud charges and obtained asset freezes in September 2015 when at least $32 million had been raised; a subsequent court-appointed receiver and DOJ criminal prosecution ultimately established total investor losses of approximately $147 million from around 70,000 victims, predominantly Chinese and Chinese-American investors. Steve Chen pleaded guilty in 2020 to conspiracy to commit wire fraud and tax evasion, was sentenced to ten years in federal prison in January 2021, and died in custody on November 19, 2022.
Connected Entities
1 entities · 10 linked investigations- + 2 more
Timeline(12 events)
2013-04-01
USFIA Inc. begins soliciting investors with promises of returns from amber mining operations and a forthcoming IPO; investors pay $1,000–$30,000 for membership packages.
SEC Press Release 2015-2272014-09-01
USFIA pivots: existing investors' holdings are converted into 'Gemcoins,' a virtual currency falsely claimed to be backed by billions of dollars in amber and gemstone mining assets.
SEC Press Release 2015-2272015-09-22
SEC files civil fraud complaint in U.S. District Court, Central District of California, against Steve Chen and 13 entities including USFIA Inc., alleging a $32 million scheme.
SEC Litigation Release LR-233782015-09-28
Judge R. Gary Klausner grants SEC's request for a temporary restraining order, asset freeze, and appointment of Thomas Seaman as receiver over USFIA and related entities.
SEC Press Release 2015-2272015-10-01
SEC publicly announces the enforcement action; federal authorities raid USFIA offices in Arcadia, California.
SEC Press Release 2015-2272015-10-08
Liu Law Group files a $100 million class action lawsuit at Los Angeles Superior Court on behalf of approximately 3,000 Chinese and Chinese-American victims.
CoinDesk: GemCoin Investors Seek $100 Million in Class Action Lawsuit2016-02-01
Court-appointed receiver Thomas Seaman files report concluding USFIA was designed from inception to defraud; reports recovery of $21.9 million in investor funds.
The Merkle: Further Details Uncovered in $32 Million Gemcoin Ponzi Scheme2017-03-15
Court enters $74 million civil judgment against Chen and entities: $51.9 million disgorgement, $3.8 million prejudgment interest, $16.7 million civil penalty.
CoinDesk: Gemcoin Ponzi Scheme Operator Hit With $74 Million Judgment2019-07-01
Co-defendant Leonard Stacy Johnson, USFIA Vice President of Investor Relations, pleads guilty to tax evasion and making a false statement on an immigration document.
BehindMLM: Leonard Johnson avoids prison for USFIA Gemcoin fraud2020-02-01
Steve Chen agrees to plead guilty to one count of conspiracy to commit wire fraud and one count of tax evasion in the criminal case brought by the DOJ.
DOJ USAO-CDCA: San Gabriel Valley Man Agrees to Plead Guilty2021-01-10
Judge John F. Walter sentences Steve Chen, age 63, to ten years (120 months) in federal prison and orders $1,885,094 in restitution to the IRS; victim restitution hearing deferred.
DOJ USAO-CDCA: Bradbury Man Sentenced to 10 Years in Prison2022-11-19
Steve Chen, age 65, dies while incarcerated in federal custody; cause of death is not publicly disclosed.
BehindMLM: USFIA Ponzi founder Steve Chen dies in prisonDecision Log
- hash: 4DgxmWh1UYW6gWBMJB27BsSmjRzpwZhqPSwjFBQmNJUS
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-code-investigator
generated: 5/31/2026, 6:20:57 PM
last updated: 5/31/2026, 6:21:01 PM
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