Illinois Man Files $5.5M Lawsuit Accusing Companies and Individuals of Elaborate Crypto Fraud Scheme

News | May 17, 2024 By:

On Wednesday, May 1, 2024, Jack Richter, a citizen and resident of Illinois, filed a civil lawsuit against eight corporations and individuals in the United States District Court for the Central District of California.

The complaint alleges that Richter fell victim to an international “pig butchering” scheme and lost over $5 million after being defrauded through fraudulent forex and cryptocurrency investments. According to the complaint, Richter was approached on an online dating site in July 2023 by an individual using the alias “Ellie” who began communicating with him on messaging platforms. “Ellie” gained Richter’s trust over months and eventually convinced him to start investing, claiming to have insight on profitable trades from her uncle.

Richter was instructed to open an account and transfer funds to business bank accounts owned by the defendants, which are identified in the complaint as KRG Trading, Z&Q International Trading, Dlab Max Limited, Wealth USA, and AE Pay. The accounts purported to be for a forex trading site called Beraringfx, accessible through an app and website. For several months, Richter’s account appeared to generate steady profits from crypto and forex trades.

However, in February 2024, Richter’s account unexpectedly showed a loss of over $23 million after a bitcoin trade went badly. According to the complaint, independent analysis shows such a loss was not possible based on actual market conditions. When Richter sought to withdraw funds, he was told by the defendants to deposit more money or face losing his initial investments.

Subsequent investigations revealed the trading platform and gains had been fabricated, leading Richter to believe he was the victim of an elaborate fraud scheme. The lawsuit accuses the defendants of fraud, unjust enrichment, conspiracy, and conversion, and seeks return of the $5.5 million allegedly stolen plus punitive damages.

Please contact BlockTribune for access to a copy of this filing.