Crypto Scam Targeting Law Enforcement
The US Securities and Exchange Commission (SEC) has charged former New Jersey State Correctional Police Officer, John A. DeSalvo, for orchestrating a fraudulent crypto fraud scheme that specifically targeted law enforcement personnel. DeSalvo allegedly raised funds through the unregistered offering of the Blazar Token, misappropriating investor funds and using them for personal expenses. The SEC’s complaint highlights DeSalvo’s deliberate targeting of fellow law enforcement and first responders in his fraudulent schemes.
Key Points:
– DeSalvo allegedly raised at least $620,000 from around 220 investors through the Blazar Token scheme.
– He made false claims to investors, stating that the Blazar Token was registered with the SEC and would replace state pension systems.
– The SEC’s complaint also exposes an earlier fraud initiated by DeSalvo, involving trading stocks, options, and crypto asset securities.
– Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, condemned DeSalvo’s actions and emphasized the breach of trust he perpetrated.
– The SEC seeks injunctive relief, disgorgement of ill-gotten gains, and imposition of civil penalties, while the U.S. Attorney’s Office has announced criminal charges against DeSalvo.
Hot Take:
This case highlights the importance of conducting thorough due diligence and being cautious when investing in cryptocurrencies. It also underscores the need for regulatory oversight to protect investors from fraudulent schemes. It is crucial for the crypto industry to continue working towards building trust and transparency to prevent such scams in the future.
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