Florida Investor Scammed Out of $860K by Crypto Trading ‘School’ and Fake Exchange

Investor Claims Crypto School and Exchange Scammed Him Out of $860K A Florida man sued in federal court, alleging a Denver-based virtual currency trading “school” and fake exchange swindled him out of $860,000 under false guarantees of huge profits. The Alpha Stock Investment Training Center (ASITC) and CoinBridge Partners used a complex scheme using faked trading signals and faked account balances, claims Brian Firestone. Signal Trading Promises Turn into Money Disaster Firestone writes the scam began last December when a man named John Smith, claiming to be with ASITC, provided him with free crypto trading lessons and even provided him with $500 to start trading. The school’s now-defunct website cited CoinBridge as a scamming exchange posing as a legitimate company. With a method called signal trading, ASITC “professors” issued timed trade orders, which members traded using their CoinBridge accounts. Firestone’s paltry early gains quickly mushroomed into fantasy multi-million-dollar balances—encouraging him to invest even more. Phantom Profits Disappear After ‘System Error’ Incited by a balance of $2 million, Firestone added another $470,000 and borrowed $330,000 from ASITC. His account used to have $24.5 million. In March, however, a loss in a USDT trade wiped out the gains. When Firestone attempted to settle the trade, he was met with a so-called “system error.” A few days later, he borrowed another $1 million to pay for—but when he failed to repay half of it, ASITC allegedly shut down his account. Lawsuit Targets Bogus Entities, Claims Fraud and Racketeering The suit sues ASITC, CoinBridge, Smith, and founder Raymond Torres of ASITC as defendants on charges of fraud, theft, and racketeering. A legitimate Wyoming entity by the name of CoinBridge Partners has issued a denial. Crypto Scams Continue to Surge in 2025 The case comes during a larger rise in crypto theft. According to blockchain security firm CertiK, more than $2.1 billion has been stolen since 2025, and phishing and social engineering attacks have already outpaced code exploits. Phishing assaults cost more than $1 billion in nearly 300 individual incidents alone in 2024—representing a dangerous new course for how scammers approach users of cryptocurrencies.

Source: BTC Pulse