- Justby became the defendant
- She presented herself as a site for crypto investments
- But in fact, she swindled money from gullible victims
Commodity Futures Trading Commission (CFTC) filed complaint against the Californian company Justby International Auctions.
According to a posting on the regulator’s website, the firm is guilty of a “pig slaughtering” scam. This is a type of scam, when criminals ingratiate themselves with the victim through emotions. It is not uncommon for scammers to conduct love correspondence for years in order to persuade a person to send money at some point.
Justby International Auctions is accused of embezzling $1.3 million in client funds. Their investors sent companies ostensibly to invest in cryptocurrencies and the Forex market. In fact, employees spent money on personal needs and a luxurious life. At least 29 citizens became victims of fraudsters.
Now Justby owner Kunwen Zhu will face trial. Also involved in the investigation will be other employees of the company, who, under the guise of lawyers, corresponded with clients.
“People were eager to avoid isolation from the pandemic and to improve communication on the Internet. The scammers saw here a new place where they can hunt and use people to their advantage.” Ian McGinley, Director of Enforcement at the CFTC, comments on the case.
Recall that in February, in a hotel in Rome, scammers boldly stole $4 million worth of cryptocurrencies. They made an appointment with an investor, asked him to show the balance of a crypto wallet, and then photographed the account data.