A Florida investor has filed a lawsuit alleging an $860,000 loss due to an alleged cryptocurrency scam involving a Denver-based training center and a purported fake exchange. The lawsuit claims the Alpha Stock Investment Training Center (ASITC) and CoinBridge Partners orchestrated a scheme that led to significant financial losses for the investor.
Investor Alleges Elaborate Crypto Scam
Brian Firestone of Florida claims he was approached in December by John Smith, representing the Alpha Stock Investment Training Center (ASITC). Smith allegedly offered to teach cryptocurrency trading and provided Firestone with $500 to start. ASITC, whose website is now defunct, reportedly directed users to trade through CoinBridge Partners, an entity Firestone's lawsuit describes as "an entirely fake exchange."
The Signal Trading Scheme
ASITC allegedly employed a method called "signal trading," where "professors" would send specific trade instructions to participants like Firestone at set times. Firestone claims his initial $500 quickly grew to $55,000, prompting him to invest an additional $50,000. His CoinBridge account balance reportedly soared to $2 million within weeks.
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Initial $500 investment quickly grew to $55,000.
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Firestone invested an additional $50,000, leading to a reported $2 million balance.
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A subsequent investment of $800,000 (cash and loan from ASITC) saw his account reach $24.5 million.
Sudden Losses and Account Closure
Firestone's fortunes allegedly turned when a trade in USDT on March 9 failed to execute, which he was told was due to a "system error" that also wiped out his $24.5 million balance. He then borrowed another $1 million from ASITC, bringing his account to $6.6 million. However, when he couldn't repay a portion of a previous loan, ASITC allegedly closed his CoinBridge account on May 1.
Legal Action and Allegations
Firestone's lawsuit, filed in Denver's federal court, alleges that ASITC was a "fraudulent entity designed to take as much money from the plaintiff as possible without giving any value in return." The lawsuit accuses ASITC, CoinBridge, John Smith, and CoinBridge founder Raymond Torres of fraud, theft, and racketeering. Attempts to contact ASITC and CoinBridge Partners have been unsuccessful, with their contact information no longer active. A legitimate Coinbridge Partners in Wyoming, which operates Bitcoin ATMs, has denied any connection to the alleged scam.
Sources:
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Florida man accuses Denver crypto school of fake crypto exchange, The Denver Post.
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Florida Investor Sues Denver Crypto School Over $860K Scam, Cointelegraph.
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