Florida Investor Sues Denver Crypto Firm Over $860K Loss
Florida Investor Loses $860,000 in Denver Crypto Scam
A Florida investor is suing a Denver-based cryptocurrency trading "school" and a purportedly fraudulent exchange, alleging a $860,000 scam. The lawsuit, filed in federal court, details how Brian Firestone claims he was defrauded by Alpha Stock Investment Training Center (ASITC) and CoinBridge Partners.
Firestone alleges that ASITC, operating out of downtown Denver, collaborated with CoinBridge Partners in Cherry Creek to execute the scheme. He was initially contacted by an individual claiming to represent ASITC, who offered cryptocurrency trading instruction and provided a $500 initial investment. The trading school’s website, now defunct, listed its address as 1660 Lincoln St.
The Scam's Mechanics
ASITC employed a "signal trading" method, where "professors" sent trade instructions to participants like Firestone. Students executed these trades through their CoinBridge accounts. Firestone’s initial investment reportedly grew to $55,000, prompting further investment. His account balance later showed $2 million before ultimately collapsing.
The lawsuit claims the initial success was fabricated, and a series of manipulated trades resulted in the loss of Firestone’s funds. After a series of deposits and loans from ASITC, amounting to $800,000, Firestone's account was ultimately shut down.
The Aftermath
The suit names ASITC, CoinBridge, the individual who contacted Firestone (John Smith), and founder Raymond Torres as defendants, accusing them of fraud, theft, and racketeering. A legitimate Coinbridge Partners in Wyoming has denied any involvement in the alleged scam. This case highlights the risks of investing in unregulated cryptocurrency ventures and the importance of due diligence.
Protecting Yourself from Crypto Scams
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Always exercise caution when considering investments in cryptocurrency trading schemes. Thorough research and understanding of the risks are paramount. Never invest more than you can afford to lose. Consider consulting with financial advisors before making any significant investment decisions.
Note: This news report is based on information available at the time of publication. Legal proceedings are ongoing, and the outcome of the lawsuit remains uncertain.