Florida Resident Sues Crypto School Over $6.6 Million Loss

A Florida resident, Brian Firestone, has initiated legal action against a crypto trading school based in Denver, United States, alleging significant financial losses due to fraudulent activities. The lawsuit targets the Alpha Stock Investment Training Center (ASITC) and its purported partner, a fraudulent crypto exchange named CoinBridge Partners. Firestone claims that he was initially approached by an individual named John Smith, who represented ASITC and offered to tutor him on crypto trading. Smith provided Firestone with a $500 gift to commence his learning process, which Firestone alleges was a tactic to lure him into the scam.

Firestone's initial investment of $500 quickly grew to $55,000, prompting him to invest an additional $50,000 in January. Within weeks, his balance allegedly reached $2 million. However, a losing trade brought his balance down to $12,000, leading him to wire $470,000 in cash and take a loan of $330,000 from ASITC to continue trading. Despite the influx of cash, Firestone's balance on CoinBridge read $24.5 million until a USDT trade he carried out on March 9 failed to execute due to a "system error," resulting in his balance being erased on the platform.

Firestone borrowed another $1 million from ASITC, bringing the total to $6.6 million. However, he was unable to repay part of the loan as ASITC allegedly shut down his account on May 1. The lawsuit accuses ASITC, CoinBridge, Smith, and platform founder Raymond Torres of fraud, racketeering, and theft. The real CoinBridge Partners in Wyoming has denied any connection to the scam.

The lawsuit highlights the risks associated with crypto trading and the potential for fraudulent activities in the industry. Firestone's case serves as a cautionary tale for investors, emphasizing the importance of conducting thorough research and exercising caution when engaging with crypto trading schools and exchanges. The incident also underscores the need for regulatory oversight and consumer protection measures in the crypto space to prevent similar fraudulent activities in the future.