Prison Warden Misleads First Responders With Crypto Scam

The American Securities and Exchange Commission (SEC) once again waves the scepter in the cryptocurrency world. This time it seems to be a valid accusation. A former prison lieutenant named John A. DeSalvo is accused of starting a crypto scam. The scam specifically targeted police officers and first responders.

Between November 2021 and May 2022, the suspect reportedly collected more than $600,000 from 222. He is said to have achieved this by selling his own Blazar token. John DeSalvo claimed the token would replace traditional state pension schemes for police, firefighters and paramedics and bring lucrative returns. On paper, it seemed like a win-win for everyone. He also claimed that the Blazar token could be acquired through payroll deductions and compared it to traditional retirement or savings plans (like the US 401k). In addition, the scammer made false claims that the token was SEC-certified.

Fraud occurred on PancakeSwap

DeSalvo has sold its Blazar token in a decentralized manner Exchange (DEX) Pancake Swap. First investors bought the digital currency in a so-called imprison. This is a period in which a certain amount cryptocurrency is held and cannot be sold or traded. It is a common way for scammers to sell coins without investors being able to negatively impact the price.

Within two weeks of John DeSalvo selling the tokens on PancakeSwap, the Blazar token lost more than 99.9% of its value. The SEC wants a permanent ban on the scammer. In addition, the government agency is demanding civil fines and the restitution of winnings.

Crypto Market in the “Wild West”

SEC Chairman Gary Gensler has increased the pressure on the crypto market over the past year, he says full of scammers sit. He highlights the similarities between today’s crypto market and the unregulated stock markets of the 1920s. He advocates strict compliance with securities laws, arguing that the crypto industry can benefit from it, as the US economy did after the introduction of securities laws over the last century.

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