According to a lawsuit filed on July 15 by two former investors who failed to get their money back, Crypto Traders Management, Based in Utah, he announced an investment strategy that represents an unregistered value while blocking user funds.
The plaintiffs are demanding the return of nearly $ 750,000 and punitive damages of more than half a million dollars.
Constant updates of the community brand ensured that investors kept coming back
The lawsuit alleges that plaintiff David Powell sent a number of investments to Crypto Traders Management from late 2018. Despite the subsequent collapse of the altcoin market, on which CTM’s well-known trading strategy was based, Powell sent monthly spreadsheets and investment updates that were clear enough to make more deposits and even recommend investments. to the co-plaintiff Merav Knafo.
According to his allegations:
“The Crypto Fund was just a scam to persuade investors to deliver more and more money by fraudulently declaring that investments grew quickly and that if the money was actually wasted or stolen, it could be withdrawn and could don’t withdraw. “
Blocked withdrawals and absent staff
Despite CTM’s constantly optimistic updates and newsletters, the lawsuit claims that the Shawn Cutting and Courtney Lata team was nowhere to be found when Powell began withdrawing funds from the fund. He eventually got $ 50,000 from over half a million invested. Knafo has not returned more than $ 100,000 to him.
Unfortunately, It is a very common story in cryptocurrencies. Many of the largest Ponzi crypto programs took place before or during the 2017 bubble, while CTM’s strategy was to continually promise investment successes that simply didn’t exist in crypto winter.
However, fraud continues to occur regularly around the world.