On February 6, 2026, Cory Kromray was sentenced to 68 months in federal prison for his role in the Driven Trading fraud, tied to the collapsed YEP and iX Global Ponzi schemes, per court records. Kromray pled guilty in October 2025 to wire fraud (Count 6) and monetary transactions in criminally derived property (Count 9), under 18 U.S.C. § 1343 and § 1957, per. The concurrent sentences reflect $828,266 in restitution owed to eight victims, with nominal $500 monthly payments post-release due to limited resources. Kromray, deemed low flight risk, must surrender by March 25, 2026.
Driven Trading, promoted by Jimmy Ezzell (YEP) and Joe Martinez (iX Global), promised high returns through fake trading bots, defrauding investors via MLM recruitment. Both YEP and iX Global collapsed, leaving trails of losses, with iX Global’s $300M+ fraud under SEC scrutiny, per. Kromray’s indictment in May 2025 exposed his role in funneling funds, mirroring tactics in Forsage ($340M losses) and GSB GSPartners, per. The DOJ’s focus on wire fraud highlights interstate deception,18 U.S.C. § 1343.
Kromray’s sentencing reinforces DOJ and SEC crackdowns on MLM crypto Ponzi schemes, following OnPassive ($32M settlement) and BitClub Network cases. Texas TSSB’s ongoing GSPartners negotiations and BaFin warnings against WeFi and Cryptex signal global vigilance, per. Bitcoin (BTC) ($113,234) and Ethereum (ETH) ($4,070) remain unaffected, per CoinMarketCap, but fraud cases erode trust in DeFi and altcoins, per. SEC Chair Paul Atkins’ pro-innovation stance may balance enforcement.
Kromray’s case underscores MLM and unregistered securities risks, per. Investors should verify platforms via sec.gov or finra.org, avoiding schemes promising guaranteed returns. Diversify into USDC or BTC with stop-losses below $112,000, per TradingView. Follow @TheBlock__ on X for regulatory updates. While crypto adoption grows via institutional staking and ETFs, fraud enforcement like Kromray’s protects the ecosystem, fostering long-term stability in 2026.
