US man used complex cryptocurrency ecosystem to defraud investors
US man used complex cryptocurrency ecosystem to defraud investors Justice Department charged John DeMarr offered investors to trade in his two front companies using the token, offering astounding 8000 per cent returns and diverting funds into private accounts A securities fraud has come to light in the United States of America where a man dealing in cryptocurrency has been accused...
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US man used complex cryptocurrency ecosystem to defraud investors
Justice Department charged John DeMarr offered investors to trade in his two front companies using the token, offering astounding 8000 per cent returns and diverting funds into private accounts
A securities fraud has come to light in the United States of America where a man dealing in cryptocurrency has been accused of swindling huge money.
The man, John DeMarr, a California resident, was on 1 February 2021, was charged in a complaint by the US Department of Justice for his alleged conspiracy to defraud people with his cryptocurrency and securities fraud scheme.
DeMarr is accused of diverting $11.4 million of investors' money into his private account and disappear faking an assault on him in Montenegro.
The complaint was originally filed on28 January 2021 in the US District Court for the Eastern District New York (EDNY) for committing securities fraud between November 2017 and May 2018.
DeMarr and two of his yet-unnamed American co-conspirators were charged with creating a complex front of creating a Bitcoin ecosystem that encouraged investors to trade with one another using tokens within DeMarr's two companies Start Options and B2G. He promised investors up to a staggering 8000 per cent returns on their investments. The astounding returns on the investment lured in many as he used fake press statements and other fake marketing tools. While he diverted the funds into his private accounts as well as those of his two co-conspirators, he continued to provide investors' fake statements and earnings on their investments. When some investors started to have a suspicion, he published a fake statement regarding being assaulted in Montenegro and went missing.
"DeMarr made misrepresentations and false promises that coaxed investors into pouring millions of dollars into fraudulent cryptocurrency schemes, all to facilitate his extravagant lifestyle. … We will continue to root out and prosecute those who would cheat investors to line their own pockets," acting US Attorney Seth DuCharme of the EDNY said.
