Former Corrections Officer Arrested for Crypto Investment Scheme Targeting Law Enforcement
A former corrections officer from New Jersey, John DeSalvo, has been arrested for allegedly targeting law enforcement and first responders in an investment scheme involving a digital token called Blazar Token. DeSalvo claimed that the token had received approval from the Securities and Exchange Commission (SEC) and promised investors a “crypto pension” that could supplement their pension plans. Over 200 investors, primarily police, fire personnel, and EMTs, contributed more than $620,000 to the scheme. DeSalvo sold billions of his own Blazar tokens, causing the token’s price to plummet by over 99% and resulting in significant losses for most investors.
Key Points:
- John DeSalvo allegedly created and promoted the Blazar Token, promising investors a “crypto pension” that could supplement their pension plans.
- Over 200 investors, primarily law enforcement and first responders, contributed over $620,000 to the scheme.
- DeSalvo sold billions of his own Blazar tokens, causing the token’s price to plummet by over 99% and resulting in significant losses for most investors.
- The Securities and Exchange Commission (SEC) seeks a permanent injunction against DeSalvo, as well as civil penalties and disgorgement of profits.
- This enforcement action is part of increased scrutiny by US regulators on fraudulent crypto schemes.
Hot Take:
This case highlights the importance of conducting thorough research and due diligence before investing in cryptocurrencies or digital tokens. It also emphasizes the need for increased regulation and oversight to protect investors from fraudulent schemes. As the popularity of cryptocurrencies continues to grow, it is crucial for regulators and law enforcement agencies to stay vigilant and take swift action against individuals who deceive and exploit investors.
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