The US Securities and Exchange Commission (SEC) has ceased a US$32 million cryptocurrency investment scam created by Steve Chen, who misled hundreds of investors to raise millions of dollars, by claiming that the investment firm US Fine Investment Arts, Inc. (USFIA) was a subsidiary of US China Consultation Association, a joint venture between the United States and Chinese governments.
The USFIA (Jason Chen) guaranteed its investors a 64x payout in Gemcoins, in exchange for their investment in the company. Chen personally claimed that USFIA owned large amber mines in the Dominican Republic and Argentina, and that USFIA was set to undergo an initial public offering in the near future.
Foreign investors took interest in the IPO of USFIA and Chen’s claims that all investors would be entitled to receive pre-IPO shares in USFIA that would increase in value once the company becomes listed on the public stock market.
Investors were promised a highly profitable payout in Gemcoin, a cryptocurrency created by USFIA as part of the scheme. On its website, USFIA stated that Gemcoin is backed by US$50 billion in assets and has partnered with ApplePay to roll out 2,500 ATMs throughout the United States.
“Gemcoin’s value is backed by parent