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Venezuelans File $30 Million Lawsuit against Crypto Ponzi Scheme

Originally published on: BTCMANAGER
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July 17, 2019

A group of Venezuelan citizens has dragged the owners of Eagle Financial Diamond Group Inc. and Argyle Coin have been dragged to court for defrauding them through their diamond-backed crypto Ponzi scheme.

Now, the plaintiffs are demanding their initial investment money plus interest on the funds, as well as fees spent in pursuing the case, reports PYMNTS.com on July 16, 2019.

Argyle Coin Victims Fight for Justice

Per sources close to the matter, the victims of a crashed diamond-powered pyramid scheme organized by Eagle Financial Diamond Group Inc., and Argyle Coin have filed a $30 million lawsuit demanding to get both their capital and interest back, plus other fees.

The plaintiffs say the orchestrators of the scam project promised them huge returns on investment in a bid to lure them into pumping funds into the Ponzi scheme.

The seven Venezuelans who claim to be newbie investors, have accused Harold Seigel, a Canadian investment radio host, his son Jonathan Siegel and his partner, Jose Angel Aman, of misleading them through their bogus claims and lofty promises.

The investors claim that both Eagle Financial and Argyle Coin failed to provide them with any documentation showing where their funds were invested. They said the organizers of the project also failed to give them access to their Argyle Coin wallets.

BTCManager informed earlier in May 2019 that the U.S. Securities and Exchange Commission (SEC) had obtained an emergency court order halting the operations of Eagle Financial Diamond Group Inc., Natural Diamonds Investment Co., and Argyle Coin.

At the time, the civil enforcement action accused the Siegels and Aman of using investors money to run a pyramid scheme targeting over 300 investors in Canada and the U.S.

According to the SEC complaint, Aman started offering unregistered securities in May 2014, lying to investors that the startup would invest their funds in fancy-colored whole diamonds.

Instead, the fraudsters misappropriated more than “$10 million of investor funds to pay other investors their purported returns. And for Aman’s expenses, including rent on his home, purchases of horses, and riding lessons for his son” according to reports.

Though the SEC and other regulators are yet to win the battle against fake crypto investment schemes, the fact remains that these financial watchdogs remain determined to sanitize the cryptospace.

On July 11, 2019, BTCManager informed that court authorities had fined two Americans $360,000 for impersonating the Commodity Futures Trading Commission (CFTC) in a bitcoin scam.

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