(REjected ) Three Crypto Traders Allegedly Scammed More Than 100 Investors In A $35 Million Ponzi Scheme

According to a lawsuit filed by a group of victims in the Federal Court of Florida, United States, three purported crypto-traders ran Ponzi schemes which incurred a loss of $35 million to more than 100 investors. 

The Q3 Investment Recovery Vehicle which happens to represent the victim investors, in its complaint, accused all the three alleged crypto traders of committing fraud by selling them a fake winning trading formula. 

The fraud case came up with the names of three individuals as the primary suspect of the crime. One of them is James Seijas who worked as a financial advisor for Wells Fargo Advisors till March 2019. The other two have been recognized as Quan Tran, a surgeon by profession and Michael Ackerman who was a New York Stock Exchange broker. 

The Recovery Vehicle is dealing with the complaints of at least 20 victims. It has also come to the notice that similar accusations are in hearing against Ackerman in US Securities & Exchange, a US Commodity Futures Trading Associations action. He is also accused of a criminal wire transfer and money laundering. 

"The founders claimed, fraudulently, that the investments would be used to trade cryptocurrency using a proprietary and wildly successful algorithm developed by Ackerman.", statement issues by Q3 Recovery Vehicle.

According to the Q3 Investment Recovery Vehicle, the Q3 founders used Facebook to fool their investors and win their trust. The content of their Ponzi scheme was promoted in a doctors' group. Apart from the main culprits, the name of Donna Seijas, wife of James Seijas and Steve Saunders, vice presidents of operation of Skyway Capital Market LLC has also popped up in the ongoing investigation. 

According to the complaint, it seems that less than $5 million or even $10 million of over 100 victims' investments have been used for crypto trading. Needless to say, scams in the crypto world is just a part of it. According to the report shared by ChainAnalysis, more than $4.3 Billion have been lost in the crypto scams in the year 2019 which is three times more than the figure of 2018.