As you know, Venezuela is in a dire financial crisis. A group of Venezuelans who decided to leave the country in order to “start a new life” did not find much luck in the U. S., though, as they invested in an alleged scam that made them lose a lot of cash.
According to The Block Crypto, these investors, who were fooled into investing in a Ponzi scheme that allegedly backed tokens with diamonds, are suing the scammers for $30 million USD. They went to court last week in order to complain that Argyle Coin promised a massive return on investment and delivered nothing.
The company was managed by Harold and Jonathan Seigel and Jose Angel Aman. The group managed both Eagle Financial and Natural Diamonds, two associated firms that allegedly backed assets with diamonds. It seems that this was not the truth, however, and they defrauded over 300 investors with their Ponzi scheme.
According to reports, the group of Venezuelans was only made of amateur investors, so they fall into the lies and were disappointed when the returns never actually came. The return was supposed to be 24% in a short time, but it never came.
Initially, they invested in Eagle Financial and then further lured into Natural Diamonds. The truth was that the funds were actually being used to pay out the investors instead of buying diamonds in a classic Ponzi scheme scam.
Obviously, the group eventually ran out of money, but they fooled the amateur investors once more by offering Argyle Coin. The idea was that the crypto was backed by the diamonds and it was an investment free from risks.
The so-called digital asset was never even created. The company just took the money away and paid off some investors before basically running away. There is not even evidence that the group ever held a single diamond.
Venezuelans Are Not the Only Ones Fooled
In fact, the group of amateur Venezuelan investors are far from being the only ones who were lured into giving their money to the company. Several people have also denounced them for the same crime.
In May, the U. S. Securities and Exchange Commission (SEC) even filed a lawsuit against Argyle Coin and froze its accounts because it was deemed by the regulator as a clear Ponzi scheme.
The company actually lasted a long time before the problems emerged. Natural Diamonds was initially founded back in 2014, always promising a return on investment of 24% within two years. The scam was not very obvious and the returns were not completely unbelievable, so the team was able to pull it off for quite some time.
There is a lot of evidence that the trio was involved in foul play, so the Venezuelan investors (as well as all the other ones) are probably going to win their case this time.