SEC accused the former civil servant of fraud with Blazar token – Bits Media

The US SEC has accused the former lieutenant of the department of the staff of New John Palesvo in fraud with Blazar token, created for the police, Firefighters and doctors.

United States Securities and Exchange Commission (SEC) claims, that since November 2021 of the year by May 2022 John a. Desualvo (John A. Desalvo) attracted $623 388 from 222 investors by selling your own Blazar token. This cryptoactive was created specifically for police and employees of emergency response services. Desualvo declared, that Blazar replaces traditional state pension systems, and promised investors a big profit.

Desualvo claimed, that the Blazar token was the first crypto acting, which can be purchased at the expense of deductions from wages every week. The creator of token also made false statements about registration in the SEC, although in fact he did not receive permission of the regulatory authority. Despite the announcement of the initial period of “blocking” investors, after placing Pancakeswap on a decentralized exchange, in has 2022 Decayed sold for years 41 billion Blazar tokens in the amount $51 000. TO 22 May, almost two weeks after these sales, Blazar token lost its value, falling to zero.

“The sale of a large volume of Blazar tokens exerted severe pressure on the course of this crypto active, which led to its collapse and significant losses for investors ", SEC said.

The regulator demanded a permanent ban on Desialvo activities in relation to securities, imposing an administrative fine and removal of illegally obtained funds.

Recently, SEC fined the investment company Titan Crypto Capital Management $1 Milln for false statements and concealment of information from investors. This month, the agency also achieved temporary freezing of the Digital Licensing Inc crypto company, which SEC also accused of fraud.