• The U.S. Securities and Exchange Commission (SEC) filed charges against John DeSalvo, creator of the minor cryptocurrency Blazar Token, on August 23rd.
• DeSalvo allegedly raised $620,000 from 220 investors by claiming that Blazar Token could replace existing state pension systems and promised extraordinary returns on investment.
• He targeted law enforcement and first responders as potential buyers through his status as a former corrections officer.
Charges Filed Against Creator of Blazar Token
The U.S. Securities and Exchange Commission (SEC) has filed charges against John DeSalvo, the creator of a minor cryptocurrency called Blazar Token, on Aug. 23 . The agency said that DeSalvo created Blazar Token in 2021 and raised $620,000 from 220 investors before the token ultimately collapsed in May 2022.
DeSalvo’s Background
DeSalvo once worked as a State Correctional Police Officer in New Jersey, a fact that was key to his scheme. He allegedly touted Blazar Token as a replacement for existing state pension systems and said his token could be purchased through automatic payroll deductions. He targeted law enforcement and first responders as potential buyers and gained their trust through his status as a former corrections officer.
Promised Returns
The SEC also alleged that DeSalvo guaranteed extraordinary returns on investments made with the token without any proof to back it up or legal authorization to offer such services or guarantees to investors. This is considered fraud according to securities laws which forbid offering false or misleading statements about investments or guaranteeing returns without proper registration with financial regulators like the SEC.
Investor Losses
As a result of these actions many investors lost their money when the value of Blazar Token collapsed shortly after its launch in 2021; leaving many people out of pocket due to what was essentially an elaborate scam by an ex-police officer who had used his status to gain trust from potential victims within law enforcement circles .
Conclusion
In conclusion, this case serves as an important reminder for all those involved – both individuals and businesses – within the crypto space to exercise caution when investing in digital assets due to the increased risk posed by fraudulent activities like those perpetrated by DeSalvo with Blazar Token .