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Ex-Cop's Crypto Con: SEC Exposes Former Police Lieutenant's Elaborate Scam

Jack Evans
Aug 25, 2023 at 11:17 am

In a stunning revelation that has sent shockwaves through the world of cryptocurrency, the United States Securities and Exchange Commission (SEC) has unveiled its charges against John A. DeSalvo, a former lieutenant at the New Jersey Department of Corrections, for his alleged involvement in an intricate crypto scam. What initially seemed like a beacon of financial opportunity turned out to be a dark web of deception, ensnaring not just investors but fellow police officers as well.

The intricate web of DeSalvo's crypto scam is nothing short of bewildering. Exploiting the trust inherent in his previous position, he targeted fellow law enforcement personnel with the promise of extraordinary returns. According to the SEC's findings, DeSalvo managed to amass a staggering $623,388 from 222 investors who fell prey to his cunningly devised scheme.

Gurbir S. Grewal, the director of the SEC’s Division of Enforcement, minced no words in describing DeSalvo's actions: “We allege that DeSalvo orchestrated several fraudulent investment schemes that targeted law enforcement personnel and promised astronomical returns, including one involving a crypto asset security that would somehow replace traditional state pension systems. Rather than producing any returns or revolutionary technology, he instead misappropriated and misused investor money.”

The focal point of the scam was a fictitious cryptocurrency named the Blazar token. Marketed from November 2021 to May 2022, this digital phantom was touted to be the salvation of firefighters, paramedics, and policemen, offering substantial returns in lieu of the prevailing state pension system. DeSalvo, in his elaborate pitch, claimed that the Blazar token could be seamlessly purchased through payroll deductions, a concept reminiscent of pension contributions or retirement savings plans.

As the deception unfolded, DeSalvo took the charade to another level by selling 41 billion Blazar tokens, alleging that they were securitized by a regulatory agency. This strategy managed to lure in an additional $51,000, boosting the scam's apparent credibility. However, the house of cards came crashing down when it was revealed that the Blazar token had never been registered with the SEC, exposing the entire operation as a sham.

The tale of John A. DeSalvo's crypto scam serves as a stark reminder that the allure of quick riches and the promise of innovation can sometimes cloak even the most nefarious intentions. The world of cryptocurrency, while brimming with potential, requires cautious vigilance and discernment. As regulatory bodies like the SEC continue to strive for transparency and investor protection, it falls upon all of us to exercise due diligence, even in the face of seemingly groundbreaking opportunities. In the end, the Blazar token's meteoric fall serves as a cautionary tale, echoing the age-old adage that if something seems too good to be true, it probably is.

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