A Former New Jersey Corrections Officer Arrested for Crypto Investment Scheme Targeting Law Enforcement and First Responders
A former New Jersey corrections officer, John DeSalvo, was arrested for creating and promoting the Blazar Token, a digital token marketed as a “crypto pension” for law enforcement and first responders. DeSalvo allegedly misrepresented that the token was approved or in the process of being approved by the SEC. He raised over $620,000 from more than 200 investors and later sold billions of his own tokens, causing investors to lose their entire investments.
Main Breakdowns:
- DeSalvo targeted law enforcement and first responders to invest in the Blazar Token.
- He misrepresented that the token was approved or in the process of being approved by the SEC.
- He raised over $620,000 from more than 200 investors.
- DeSalvo sold his own tokens, causing investors to lose their investments.
- The SEC charged DeSalvo and referred to Blazar as a “crypto asset security.”
SEC’s Response and Hot Take:
The SEC charged DeSalvo for his fraudulent investment schemes and emphasized the importance of registering the offer and sale of securities to ensure investor protection. This case highlights the need for critical oversight and improved disclosures in the crypto industry. It serves as a reminder to be cautious of investment opportunities that make claims difficult to verify independently.
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