New lawsuit claims that Ponzi operators in Utah took the money and fled

According to a July 15 lawsuit by two former investors who were unsuccessful in recovering their money, Utah-based Crypto Traders Management announced an investment strategy that was unregistered, while actually blocking user funds.

The plaintiffs are seeking the return of nearly USD 750,000 and punitive damages of more than half a million dollars.

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CTM’s constant updates made the investors come back
The lawsuit claims that plaintiff David Powell sent a series of investments to Crypto Traders Management starting in late 2018. Despite the subsequent collapse of the altcoin market on which CTM’s professed trading strategy rested, the company sent Powell monthly spreadsheets and updates on the investments that were clear enough to keep him making more deposits and even recommend the investment to fellow plaintiff Merav Knafo.

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However, according to your allegations:

„The Crypto Fund was simply a scam to induce investors to hand over increasing amounts of money by fraudulently stating that investments were growing rapidly and could be withdrawn on demand when, in fact, the money was being wasted or stolen and could not be withdrawn.

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Despite CTM’s constantly optimistic updates and newsletters, the lawsuit claims that when Powell began looking to withdraw funds from the fund, Shawn Cutting and Courtney Lata’s team were nowhere to be found. They finally got $50,000 out of more than half a million invested. Knafo has yet to see more than $100,000 returned.

Unfortunately, it’s a very common story in cryptology. Many of the largest ponzi schemes in crypto occurred before or during the 2017 bubble, while CTM’s strategy was to continually promise an investment success that simply did not exist during the crypto winter.

However, scams continue to appear around the world on a regular basis.

Veröffentlicht in Krypto von admin.

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