Former New Jersey Corrections Lieutenant Charged by SEC for Orchestrating Crypto Scam Targeting Police and First Responders
Summary:
Former New Jersey corrections lieutenant, John A. DeSalvo, charged by SEC for orchestrating a crypto scam targeting police and first responders with his Blazar token. He allegedly raised over $623,000 from investors, making false claims about the token's potential and SEC registration. DeSalvo's actions caused significant losses for investors. SEC seeks penalties and injunction against him.
Former New Jersey Department of Corrections lieutenant, John A. DeSalvo, has been charged by the US Securities and Exchange Commission (SEC) for allegedly orchestrating a cryptocurrency scam that specifically targeted police officers and first responders. The SEC's announcement on August 23 reveals that DeSalvo raised $623,388 from 222 investors between November 2021 and May 2022 by selling his own token called Blazar. DeSalvo claimed that Blazar would replace traditional state pension systems for police, firefighters, and paramedics, promising investors lucrative returns. He even falsely stated that Blazar was registered with the SEC. However, DeSalvo secretly sold a significant portion of the tokens upon its debut on PancakeSwap in May 2022, causing the token's value to plummet by over 99.9%. The SEC is now seeking a permanent injunction against DeSalvo, along with civil penalties and disgorgement of profits.
Published At
8/23/2023 9:20:00 PM
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