A Florida cryptocurrency trader has been charged with duping $6.8 Mln from investors within his purported virtual asset day trading shop.
Within a recent official complaint filed by the United States SEC [Securities & Exchange Commission], the defendant, Thomas J. Gity, defrauded investors from January 2018 to January 2019 as he claimed to never end a trading day within the red.
Gity illicitly lured in 18 investors with lofty promises of outsize returns & assertions that he had $100 Mln under management.
The SEC adds that Gity cooked his books to sell the lie to investors.
Solely $970k of investors’ funds ever landed in Gity’s trading account, the SEC added. Around $1.8 Mln were allegedly transferred to Gity’s son. Prosecutors added that Gity used the remaining money to perpetuate his Ponzi schemes.
Gity was charged with multiple violations of law within the United States District Court for the Southern District of Florida recently on Tuesday.
This ongoing case is a reminder that investors in cryptocurrency should be careful with promises too good to be true. Cryptocurrencies, a bit like all asset classes, has its share of charlatans preying on the aura of a little-understood but much-hyped investment scheme.