Former New Jersey corrections officer, John A. DeSalvo, has been charged by the Securities and Exchange Commission (SEC) for defrauding law enforcement personnel and first responders in a cryptocurrency investment scheme. DeSalvo is accused of illegally raising over $620,000 from about 220 investors through an unregistered crypto token called Blazar Token, which collapsed in May 2022. The SEC complaint states that DeSalvo falsely claimed the token was registered and approved by the agency, promised high returns, and claimed it would replace existing pension systems. DeSalvo targeted investors through social media and misappropriated the funds for personal expenses. The SEC is seeking financial penalties and a ban on participating in future cryptocurrency offerings.
Key points:
– DeSalvo fraudulently raised over $620,000 from about 220 investors through an unregistered crypto token called Blazar Token.
– He falsely claimed the token was registered and approved by the SEC, promised high returns, and claimed it would replace existing pension systems.
– DeSalvo targeted investors through social media and misappropriated the funds for personal expenses, including a bathroom renovation.
– The SEC seeks financial penalties and a ban on participating in future cryptocurrency offerings.
– Criminal charges have also been filed against DeSalvo.
Hot Take:
The charges against former corrections officer John A. DeSalvo highlight the importance of caution and due diligence when investing in cryptocurrencies. This case serves as a reminder to crypto investors to thoroughly research investment opportunities and be wary of promises of high returns. It is crucial to only invest in registered and approved tokens and to verify the credibility of the individuals and companies behind them. The SEC’s actions against DeSalvo demonstrate their commitment to protecting investors and maintaining the integrity of the cryptocurrency market.
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