Florida Investor Loses $860,000 in Crypto Scam Involving Fake Exchange

A Florida investor has alleged that he was defrauded of $860,000 by a Denver-based crypto trading school and a fake exchange that promised lucrative trade signals. The lawsuit reveals a sophisticated scam orchestrated by the Alpha Stock Investment Training Center (ASITC) and CoinBridge Partners, which used signal trading to lure victims.

The Alpha Stock Investment Training Center (ASITC) employed a deceptive strategy known as signal trading to manipulate investors. This method involved “professors” sending precise trade instructions to participants, who then executed trades on the purported CoinBridge exchange. Initial gains reported by the plaintiff, Brian Firestone, created a false sense of security, encouraging further investments. Firestone’s balance reportedly surged from a modest $500 to an astonishing $2 million within weeks, a growth pattern typical of fraudulent schemes designed to build trust before collapsing.

CoinBridge Partners, operating out of Cherry Creek, was central to the scam. Despite claims of raising $10 million from 600 investors, the exchange was entirely fictitious, as detailed in Firestone’s complaint. The platform’s malfunctioning trade execution and sudden account shutdowns underscore the lack of regulatory oversight and transparency. The real CoinBridge Partners based in Wyoming has publicly denied any involvement, emphasizing the prevalence of impersonation in crypto frauds. This case highlights the critical importance of verifying exchange legitimacy before committing funds.

In 2025, crypto-related thefts have surpassed $2.1 billion, with a significant portion attributed to social engineering and phishing attacks rather than traditional code exploits. The Firestone case exemplifies this trend, where trust and psychological manipulation replaced technical hacking. Investors are urged to exercise heightened caution and conduct thorough due diligence when engaging with crypto education platforms and exchanges.

Phishing attacks alone accounted for over $1 billion in losses during 2024, according to industry reports. These attacks often masquerade as legitimate communications, deceiving users into revealing sensitive information or authorizing fraudulent transactions. The ASITC scheme leveraged similar tactics by posing as a reputable trading school and providing convincing trade signals. This underscores the necessity for robust security awareness and skepticism towards unsolicited investment opportunities promising guaranteed returns.

The lawsuit filed by Firestone accuses ASITC, CoinBridge, and associated individuals of fraud, theft, and racketeering. Such legal proceedings are crucial in holding perpetrators accountable and deterring future scams. Meanwhile, regulatory bodies and crypto platforms are intensifying efforts to educate users and implement stricter verification processes. Investors should remain vigilant and report suspicious activities to authorities promptly to mitigate losses and protect the broader crypto ecosystem.

The Alpha Stock Investment Training Center and CoinBridge Partners case serves as a stark reminder of the risks inherent in unregulated crypto ventures. Investors must prioritize due diligence and skepticism when approached with too-good-to-be-true opportunities, especially those involving complex trading signals and unverified exchanges. As crypto thefts continue to rise, awareness and education remain the most effective defenses against sophisticated scams exploiting user trust.