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

Brian Firestone, a Florida investor, has filed a lawsuit in federal court alleging that he was defrauded out of $860,000 by a Denver-based trading school and a fake cryptocurrency exchange. The lawsuit names the Alpha Stock Investment Training Center (ASITC) and CoinBridge Partners as defendants, accusing them of fraud, theft, and racketeering.

According to the complaint, Firestone was first approached in December by a man named John Smith, who claimed to represent ASITC. Smith offered to teach Firestone cryptocurrency trading and gifted him $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. However, Firestone alleges that CoinBridge is an entirely fake exchange.

ASITC allegedly used a method called signal trading, where “professors” would message participants with exact trade instructions at a specific time. Students would then click to execute the trade via their CoinBridge account. Firestone’s initial $500 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 lawsuit 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 investing in cryptocurrencies, particularly when relying on third-party trading signals and exchanges. It underscores the need for greater regulation and oversight in the crypto industry to protect investors from fraud and deception. The lawsuit is ongoing, and the defendants have not yet responded to the allegations. Firestone is seeking damages in excess of $860,000, as well as punitive damages and legal fees.