Feds Bust Gemcoin Startup Accused of a $32 Million Scam
Federal authorities have raided an alleged Ponzi investment scam that promised to pay dividends to investors by claiming to hold amber mines whose profits would be paid out in the cryptocurrency - Gemcoin. The Securities and Exchange Commission (SEC) announced the filing of fraud charges and the raid of a Southern California company - USFIA, allegedly running a Ponzi scheme that raised more than $32 million from investors both within and outside the U. S. since April 2013. The accused include founder Steve Chen and a total of 13 California-based companies at the center of the Ponzi scheme.....
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Speaking favorably about the troubled virtual currency Gemcoin in the past has cost Arcadian Councilman John Wuo his job. The news of his resignation was reported by the news siteLatimes.com. Wuo had earlier appeared in several YouTube videos promoting Gemcoin which brought irate users of the digital currency to demand an explanation from him as well. The resignation of the Councilman also comes close on the heels of a major investigation which is being undertaken on the complaint of the disgruntled consumers of the virtual currency. The problem with the Gemcoin came to light after a....
A law firm representing the victims of an alleged Ponzi scheme that promised high rewards of 'Gemcoin,' a fake cryptocurrency, has filed a $100 million class-action lawsuit against 10 defendants involved in the scam. Merely days after the U. S. Securities and Exchange Commission (SEC) took down and charged Steven Chen, founder of USFIA - the company at the center of the pyramid scheme; a law firm has a $100 million class been filed on behalf of the victims. Gemcoin. Gemcoin was touted as a new cryptocurrency to get investors to put their own money into USFIA. The investors were also....
An $100m class action lawsuit has been filed on behalf of victims of an alleged Ponzi scheme involving the fake cryptocurrency 'Gemcoin' days after a US Securities and Exchange Commission (SEC) crackdown. The complaint, filed Monday by The Liu Law Group at the Los Angeles Superior Court, claims the scheme defrauded thousands of Chinese and Chinese-American investors beginning in 2014. It follows an SEC complaint late last month and a seizure of assets from the company's Arcadia headquarters on 1st October. The documents name 10 defendants allegedly involved in the Gemcoin scandal,....
A California politician has become embroiled in a growing controversy surrounding an investment company, an alternative digital currency and investors who say they've been duped. According to reports by The Pasadena Star-News, state and federal regulators are investigating US Fine Investment Arts Inc (USFIA), a company backing a digital currency called Gemcoin. The Los Angeles Times reports that the US Federal Bureau of Investigation (FBI) is also speaking with investors who have accused the company of running a scam. An official with the California Department of Business Oversight....
The US Securities and Exchange Commission (SEC) has ceased a US$32 million cryptocurrency investment scam created by Steve Chen, who misled hundreds of investors to raise millions of dollars, by claiming that the investment firm US Fine Investment Arts, Inc. (USFIA) was a subsidiary of US China Consultation Association, a joint venture between the United States and Chinese governments. The USFIA (Jason Chen) guaranteed its investors a 64x payout in Gemcoins, in exchange for their investment in the company. Chen personally claimed that USFIA owned large amber mines in the Dominican Republic....