Canadian man indicted in the US for $42 million fraud case—Investment scam on Discord

DYORMaster · 2026-01-21T11:31:59+00:00

Canadian Nathan Goughvin was indicted for a fraudulent scheme that allegedly raised over $42 million through false advertising and fake investment opportunities targeting Discord users. Funds were misappropriated for personal gain, and he faces charges from U.S. authorities and the SEC for securities fraud and obstruction.

DYORMaster

2026-01-21 11:31:59

Abstract generation in progress

On December 11, according to Bloomberg reports, U.S. prosecutors have indicted Canadian national Narsan Govin. The Canadian man is accused of orchestrating a scam that raised over $42 million through false advertising. This case has attracted attention as a major fraud incident involving a scam on the Discord messaging app, prompting active investigation by U.S. authorities.

Raising Massive Funds from Investors through False Investment Schemes

Govin claimed to offer investment opportunities in a fund that “integrates TradeFi and DeFi” through Gray Digital Capital Management and its Gray Fund from May 2022 to October 2024, luring investors. The Canadian man repeatedly falsified his credentials, company assets, and track record, and even falsely reported that the Gray Fund’s returns were 4,384%.

The scam targeted Discord users, spreading false information claiming investments in traditional finance and cryptocurrencies. Based on these false claims, investors provided funds.

Misappropriation of Funds and Illegal Lending—The Reality of the Suspect’s Illegal Activities

Most of the raised funds were not returned to investors but were instead used for personal gain by Govin. Funds were diverted to purchase luxury jewelry and pay credit card bills. Additionally, he received an $800,000 fraudulent loan from a fintech company, which was also used for personal expenses. The actions of this Canadian man exemplify a typical investment scam pattern.

U.S. Authorities and SEC Pursue Simultaneously—Govin’s Arrest

Govin was arrested in the UK on Wednesday. Meanwhile, the U.S. Securities and Exchange Commission (SEC) has also filed charges of securities fraud. According to SEC claims, Govin provided false information to regulators at the start of the investigation and submitted fraudulent documents, with charges including both fraud and obstruction of regulatory processes.

Currently, Govin’s personal lawyer has not yet been identified. This case highlights the risks of social media platforms like Discord being exploited by scammers and underscores the importance of fraud prevention in cryptocurrency investments.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.