A Florida investor says he was scammed out of $860,000 by a Denver-based buying and selling “college” and a pretend crypto trade that promised him life-changing income.
In a lawsuit filed final week in federal courtroom, Brian Firestone alleges that the Alpha Inventory Funding Coaching Heart (ASITC), which operated out of downtown Denver, partnered with a fraudulent trade known as CoinBridge Companions in Cherry Creek to hold out the scheme.
Firestone says he was first approached in December by a person named John Smith, who claimed to signify ASITC. Smith provided to teach cryptocurrency trading and gifted him $500 to begin.
The buying and selling college’s web site, now defunct, listed its deal with as 1660 Lincoln St. and directed customers to commerce by way of CoinBridge, which claimed to have raised $10 million from 600 buyers. “CoinBridge is actually a wholly pretend trade,” Firestone wrote within the criticism.
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Crypto college used commerce indicators to lure buyers
ASITC allegedly used a way known as sign buying and selling. In keeping with the go well with, “professors” would message contributors like Firestone with actual commerce directions at a selected time. College students would then click on to execute the commerce by way of their CoinBridge account.
Firestone says his preliminary $500 shortly ballooned to $55,000, prompting him to take a position $50,000 extra in January. Inside weeks, his steadiness confirmed $2 million.
“Professor, I have to thanks,” Firestone texted Smith on Feb. 8. “My outcomes had been excellent. Thanks for letting me on this commerce right now. That is so thrilling!”
Nevertheless, the thrill didn’t final. A shedding commerce reportedly introduced his steadiness right down to $12,000. Firestone then wired $470,000 in money and took a $330,000 mortgage from ASITC to proceed buying and selling. He says his CoinBridge account jumped to $24.5 million, till a commerce in USDT on March 9 did not execute.
“I can’t shut it,” Firestone messaged Smith. “I ncant clpsoe it.” Firestone was advised a “system error” brought on the glitch and erased his steadiness.
Two days later, he borrowed $1 million extra from ASITC, bringing his account to $6.6 million. Nevertheless, when he couldn’t repay a part of the mortgage, ASITC allegedly shut his account down on Could 1.
The go well with accuses ASITC, CoinBridge, Smith, and founder Raymond Torres of fraud, theft, and racketeering. The actual Coinbridge Companions in Wyoming has denied any connection to the alleged rip-off.
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$2.1B crypto stolen in 2025
Thus far in 2025, over $2.1 billion has been stolen in crypto-related incidents, with most losses tied to pockets compromises and key mismanagement, CertiK co-founder Ronghui Gu mentioned. The development factors to a rising shift from code-based hacks to focusing on consumer conduct.
In 2024 alone, phishing assaults accounted for over $1 billion in losses throughout almost 300 incidents, making it probably the most damaging methodology of assault within the crypto area.
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