Recent reports hold that a former New Jersey cop has been caught up in a cryptocurrency scam which specifically targeted public servants; from police officers and fire-fighters to EMTs, amongst others who made up first-responders to the crypto investment scam which raked in $620,000. 47-year-old John DeSalvo had created a coin called Glazar in November 2022 which eventually plummeted in value in May 2023 and was prior sold to about 220 investors with a promise of massive profits and zero risk in a scheme which he coined as “crypto pension”, the token’s value came down to next-to-nothing as he sold 41billion worth of his Blazar tokens, DeSalvo swiftly diverted investor funds into his personal wallets and accounts for his own use.
The 2010 retiree of the Department of Corrections who had orchestrated this heinous crime against fellow colleagues has been charged with Federal and State crimes, he also faces a lawsuit which was filed by the United States Securities and Exchange Commission. The SECs director, Gurbir Grewal expressed his disappointment as the former corrections officer had used his position to gain the trust of his fellow law enforcement agents.
Apparently DeSalvo did not act alone as his co-conspirator in this crime has been identified as a former police officer in Williamstown who had invested $25,000 in the Blazar token and developed a computer code for the scam token, then proceeded to solicit investors, the cohorts had convinced their victims that the token would be more stable than any other coin on the market. DeSalvo boasted to be among the 1,000th percentile of the world and claimed to investors that the estimated ROI would be 1200% over the next 2 years, convincing his victims that all they had to do was sit back and amass wealth.
Authorities revealed that the criminal mastermind had paid a few investors, operating a Ponzi scheme. However, most of the investors’ money sank into his personal expenses. Upon exposure of his scheme, DeSalvo promptly provided manipulated trading portfolios and blamed losses on poor market conditions.
Following his arrest on April 23, DeSalvo faces a double count charge of securities fraud, money laundering and wire fraud, according to the New Jersey DEAs office. State Charges against him include deceptive business practices and deception, for which he is yet to be convicted.
Victims of cryptocurrency investment fraud are advised to file a complaint as soon as possible as a return of funds to victims as well as other measures will be enforced.