- An investor based in Florida was scammed on $ 860,000 after being attracted to a false crypto trading school where the first faux profits encouraged him to invest more money.
- The scam involved a training platform on investment in alpha shares and a fraudulent exchange called corner. They both used signal trading and handled account sales to make Firestone believe that he was gaining millions.
A man from Florida became a victim of a cryptographic scam which cost him $ 860,000 after registering in a negotiation school which promised him enormous yields. The school, as he was told, involved false exchanges and misleading signals, leading him to believe that he made profits when his money was really drained.
The incident has shown growing non -regulated financial risks and, more importantly, cryptographic platforms play in the exposure of innocent individuals to fraud and financial loss that operate without any form of regulation and responsibility.
Florida Man is continuing a crypto trading school more than $ 860,000 in scam
Last week, A prosecution has been filed By Brian Firestone, a man from Florida. According to his judicial file, he said that he had lost $ 860,000 against a cryptographic scam which involved a trading school based in Denver and an exchange platform. Depending on the details of the file, Firestone invoiced the training center on ALPHA (ASITC) and Coinbridge actions as two partners who made the scam.
Firestone explained how he met a man named John Smith for the first time in December. Smith, who is now recognized as an accomplice. Smith presented himself as an ASITC representative and proposed to teach Firestone how to exchange the crypto. To start it, Smith gave Firestone $ 500 as a gift, which turned out to be a trap.
One of the red flags of the platform was that he demanded that all users put their trades via Coinbridge, a false exchange of crypto which claimed to have collected $ 10 million with 600 investors. According to the trial, ASITC used a method called signal trading. Firestone said that the instructors sent messages with specific negotiation instructions and that students had to follow them exactly.
At first, the initial investment of $ 500 from Firestone brought him $ 55,000, encouraging him to invest more. Later, he invested an additional $ 50,000 in January, which caused his dollar balance in a few weeks. Excited by the results, he thanked Smith by the text, claiming that he was grateful for the opportunity and delighted with his success so far.
Things started taking a turn when he noticed that his pay fell at $ 12,000. In order to continue making money, he then wired $ 470,000 in cash and borrowed an additional $ 330,000 from ASITC to continue to negotiate. After putting money, his balance reached $ 24.5 million.
However, on March 9, a USDT trade did not succeed, and Firestone quickly sent a message to Smith, saying: “I cannot close it”, blaming a system problem. Shortly after, all his balance has disappeared.
Also read: Norway to ban new crypto extraction sites at the end of 2025 to keep electricity
