Colorado man pleads guilty in Virginia court to defrauding investors out of millions with cryptocurrency trading bot scam
Virginia – Colorado resident Robert Wesley Robb, aged 46, entered a guilty plea earlier this week in Virginia court for engaging in a fraudulent scheme that capitalized on the burgeoning interest in cryptocurrency technologies. This case highlights the darker side of digital investment opportunities, demonstrating how easily investors can be swayed by promises of high returns through sophisticated-sounding ventures.
Rapid Recruitment and False Promises
The deception began to unfold on September 4, 2023, when Robb used social media platforms to promote an investment opportunity that seemed too good to pass up. He advertised a so-called Maximum Extractable Value (MEV) cryptocurrency trading bot, specifically targeting individuals with substantial capital, suggesting they could be part of “some next-level MEV stuff.” His pitch was direct and aimed at those with “$100-$200k+” to invest.
Court documents reveal that on September 7, an interested party from Brambleton, Virginia, known only as Investor A, contacted Robb to discuss this opportunity. Robb quickly asserted that the minimum investment was $100,000 and pressured Investor A for a swift commitment, claiming the bot would be operational “soon (likely early next week).”
Manipulative Tactics and Misuse of Funds
The situation escalated when Robb convinced Investor A to transfer $100,000 on September 8 to an Ethereum virtual currency address provided by him. In late October, Robb deceitfully claimed that a new investor was set to dilute Investor A’s potential profits with a $300,000 investment. He presented this scenario to coax an additional $50,000 from Investor A, despite having already spent the initial investment on personal luxuries.
As Robb’s scheme continued, he falsely informed Investor A on November 8 that the trading bot was still “warming up,” despite not having executed any transactions—or, indeed, having created any bot at all. When Investor A demanded a refund due to the absence of returns or proof of the bot’s existence, it became clear that Robb’s promises were empty.
Extravagant Expenditures and Legal Repercussions
The investigation, led by federal authorities, identified over ten victims with combined losses exceeding $2.2 million. Robb had diverted their investment funds to his own accounts, spending lavishly on personal items. Among these were $204,423 for an executive suite at the Denver Broncos’ Mile High Stadium, a 2023 Jeep Wagoneer costing $117,570, and a luxurious vacation worth $46,914 for his girlfriend and her family in the Bahamas.
These actions culminated in Robb facing a maximum sentence of 20 years as he awaits his sentencing scheduled for October 2. This case serves as a stark reminder of the risks associated with unverified investment opportunities, particularly in the volatile realm of cryptocurrency.
A Continuing Effort for Justice
The U.S. Attorney for the Eastern District of Virginia, Jessica D. Aber, and FBI Special Agent David J. Scott, overseeing the Washington Field Office’s Criminal and Cyber Division, announced the guilty plea following its acceptance by Senior U.S. District Judge Anthony J. Trenga. The prosecution, handled by Assistant U.S. Attorneys Zoe Bedell and Katherine E. Rumbaugh, emphasizes the ongoing commitment to tackling financial fraud, especially as it intersects with new technological frontiers like cryptocurrency.
