John A. DeSalvo, a former lieutenant at the New Jersey Department of Corrections, has been charged by the US Securities and Exchange Commission (SEC) for orchestrating a cryptocurrency scam that targeted law enforcement officers. DeSalvo allegedly raised $623,388 from 222 investors between November 2021 and May 2022 through his own digital currency, the Blazar token.DeSalvo used his former role as a corrections officer to gain the trust of fellow law enforcement personnel, convincing them to invest their savings in his fraudulent venture. He falsely claimed that the Blazar token would upend the traditional state pension systems catering to police, paramedics, and firefighters, and promised remarkable returns for investors.The SEC Director of Enforcement, Gurbir S. Grewal, expressed strong condemnation for DeSalvo’s actions, noting that he had exploited the trust vested in his former role. James Carter, President of the New Jersey State Police Benevolent Association, denounced the betrayal as beyond comprehension.DeSalvo also made false statements while soliciting investors, claiming that his token had achieved “securitization” with the SEC, despite lacking the necessary registration. He sold 41 billion Blazar tokens—equivalent to $51,000—on PancakeSwap, a decentralized exchange, in May 2022. As investors found themselves unable to sell, the token’s value plummeted by over 99.9%, leaving investors grappling with significant losses.The case highlights the critical need for strong regulation and heightened investor vigilance within the ever-evolving cryptocurrency landscape. It also serves as a reminder of the fragility of trust in our crucial public services, a trust that must be diligently upheld to safeguard the integrity of institutions and communities alike.
| Information |
Details |
| Geography |
North America |
| Countries |
🇺🇸 |
| Sentiment |
negative |
| Relevance Score |
9 |
| People |
John A. DeSalvo, James Carter, Gurbir S. Grewal |
| Companies |
SEC, New Jersey Department of Corrections, US Securities and Exchange Commission, New Jersey State Police Benevolent Association, PancakeSwap |
| Currencies |
Blazar, Bitcoin, Ethereum, PancakeSwap, USD |
| Securities |
None |
