Florida Investor Sues Denver Trading School Over $860,000 Crypto Scam

A Florida investor has filed a lawsuit alleging that he was defrauded out of $860,000 by a Denver-based trading "school" and a fake cryptocurrency exchange. The lawsuit, filed in federal court, names the Alpha Stock Investment Training Center (ASITC) and a fraudulent exchange called CoinBridge Partners as the entities responsible for the scheme.

The investor, Brian Firestone, claims that he was initially approached by a man named John Smith, who represented ASITC. Smith offered to teach Firestone cryptocurrency trading and provided him with $500 to start. The trading school's website, which is now defunct, listed its address as 1660 Lincoln St. and directed users to trade via CoinBridge, which claimed to have raised $10 million from 600 investors. Firestone alleges that CoinBridge is entirely fake.

ASITC allegedly used a method called signal trading, where "professors" would message participants with exact trade instructions at specific times. Firestone claims that his initial $500 investment quickly grew to $55,000, prompting him to invest an additional $50,000 in January. Within weeks, his balance showed $2 million. However, a losing trade reportedly brought his balance down to $12,000. Firestone then wired $470,000 in cash and took a $330,000 loan from ASITC to continue trading. He says his CoinBridge account jumped to $24.5 million, until a trade in USDT on March 9 failed to execute due to a "system error" that erased his balance.

Two days later, Firestone borrowed $1 million more from ASITC, bringing his account to $6.6 million. However, when he couldn’t repay part of the loan, ASITC allegedly shut his account down on May 1. The suit accuses ASITC, CoinBridge, Smith, and founder Raymond Torres of fraud, theft, and racketeering. The real Coinbridge Partners in Wyoming has denied any connection to the alleged scam.

This case highlights the risks associated with cryptocurrency trading and the importance of due diligence when investing in such ventures. The use of signal trading and the promise of life-changing profits are common tactics used by fraudulent schemes to lure unsuspecting investors. The lawsuit serves as a reminder for investors to be cautious and to thoroughly investigate any trading school or exchange before committing their funds.