Investors, who were conned upon investing into a fake cryptocurrency Gemcoin, recently filed a $100 million class action lawsuit against its backers.
The complaint, filed at a Los Angeles Superior Court by The Liu Law Firm, named 10 defendants allegedly involved in luring Chinese and US investors into paying US Fine Investment Arts, Inc. (USFIA) $10,000 for membership. In return of their investments, the defendants promised attractive financial and luxury bonuses.
USFIA allegedly posed itself as a company that owns amber mines in the Dominican Republic. To further prove its claims, the company also distributed ambers — a precious metal — among its investors. Later, the defendants allegedly publicized Gemcoin as a new cryptocurrency that would be backed by their amber mines. They lured investors to purchase them, while promising an impressive surge in its value.
Both ambers and Gemcoins were later found to be worthless. The complaint stated:
“There is no way for [plaintiffs] to sell off [their] Gemcoins nor is there any way for [plaintiffs] to recover [their] initial investments because the Defendants’ elaborate scheme to see his virtual currency based on the value of gems is nothing but a shell game, where the only income generated by the Defendants and