Alleged Ponzi scheme cheats investors out of millions


The land of digital assets often promises large returns on modest investments. This leaves investors feeling as if there’s a gold rush that they can’t miss out on. While there are some legitimate cryptocurrency investments out there that may be right for you, there are also a lot of scams in this market that can put you in a position where you’re taken advantage of.

Investors duped

Nearly 200 people are in that situation now after they were tricked into an alleged Ponzi scheme. Two individuals gathered $44 million that they claimed they would invest in digital assets. Federal investigators say that instead of engaging in legitimate investments, the men used the money to pay off other investors, all the while pocketing as much as $18 million. Reports estimate that at least 170 investors were taken advantage of through the scheme.

How did the scam operate?

The scam operated simply, according to investigators. The accused men posted videos on YouTube that promised investors consistent returns of 15%. They also catered to elderly individuals by marketing their investments as ways to preserve wealth. The men also turned to the term “mining” when talking about digital assets, apparently implying that wealth in the cryptocurrency market can easily be manufactured.

Volatile markets

Digital asset markets are notoriously volatile. This is problematic for obvious reasons, but it can also be an issue for those cheated out of their money by fraudulent investment professionals. For example, in the case at hand, some of the cryptocurrencies that were allegedly invested in have decreased in value by as much as 90%. Therefore, even if the assets could be recovered in this case, which is a big “if,” then they likely aren’t worth anywhere near the $44 million that was initially collected.

What does this mean for you?

This case is just one of many highlighting the extent of fraudulent activities in the securities world. If you have a bad feeling about how your investments are being handled, then you don’t have time to waste. You need to start asking questions immediately, trying to get answers as to what went wrong with your investment.

If you’re not getting answers or receiving information that is indicative of wrongdoing, you might need to consider taking legal action. After all, doing so quickly may be the best way to maximize your chances of recovering your losses.

Do you know how to build your case?

If you don’t have a clue, don’t worry. Most people don’t, and that’s OK. This isn’t a process that you will want to navigate on your own, anyway. This is because the laws pertaining to securities can be extraordinarily complicated, and getting the information that you need to properly pursue your case can be more difficult than you expect.

But by working closely with an attorney who is proven in this realm of the law, you can better position yourself for a successful claim. Your attorney can help you analyze financial statements, assess communications from your broker, and subpoena the records that are needed to give you a clear picture of the situation. Once that information is obtained, your attorney will comb through and look for any indication of wrongdoing. Then, armed with the law, they will work on crafting the legal arguments you need on your side if you hope to win.

We know that losing your investment can be stressful. You’re probably angry, confused, and frustrated all at the same time. Don’t let the burden of a potential legal claim crush you further. Instead, let an attorney help you carry the weight of your case and help position you for the successful outcome that you deserve.