Busted crypto Ponzi scam got bigger | Business News

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We are in an age where investors are duped into believing they can become millionaires by sinking their money into cryptocurrency-related companies or platforms.

Scammers are capitalizing on the crypto craze big time. Since the start of 2021, Americans have lost more than $1 billion to cryptocurrency scams, nearly 60 times the losses reported in 2018, according to the Federal Trade Commission.

A company called EminiFX claimed it had developed a proprietary trading system that would invest people’s money in cryptocurrency and the foreign exchange markets, also known as forex.

When the Justice Department and Commodity Futures Trading Commission filed complaints against a suspected Ponzi scheme by the company, they believed the swindle amounted to $59 million.

But that turned out to be a gross underestimate, according to a preliminary report filed by David Castleman, a partner at Raines Feldman in New York, who has been…

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