Massachusetts Attorney General Sues SpireBit for Alleged Cryptocurrency Scam

News | December 28, 2023 By:

On Friday, December 22, 2023, the Massachusetts attorney general’s office filed a complaint against cryptocurrency firm SpireBit, alleging the company defrauded customers through an elaborate cryptocurrency investment scam.

According to the lawsuit, SpireBit targeted elderly Russian speakers with phone calls and pop-up advertisements marketing itself as an investment company offering profits from trades in crypto, stocks, and foreign currencies. The attorney general’s office claims SpireBit is not a legitimate company and that all claims made about expected returns on investments were false.

The complaint alleges SpireBit used deceptive marketing practices, including manipulative social media ads, to attract victims to invest in what the attorney general is calling a “scam cryptocurrency.” Molly McGlynn, a spokeswoman for the office, said the company also hurt people in Massachusetts, “especially vulnerable elders.”

Through its fraudulent tactics, SpireBit allegedly took money from customers without ever investing it or providing any returns as promised. Earlier reports indicated one customer lost their entire life savings of $340,000 to the company.

The attorney general is suing SBT Investments Ltd., which is described as SpireBit’s legal name. However, the UK Financial Conduct Authority has warned that SpireBit has no connection to the actual London-based company SBT Investments Ltd and appears to be an unauthorized “clone.” The state of Vermont also separately issued its own warning about SpireBit in June.

If the allegations are proven true in court, the lawsuit seeks to hold SpireBit accountable for its fraudulent actions and stop the company from continuing such conduct in Massachusetts. As of this week, SpireBit’s website appears to be offline. The litigation is still in early stages and it remains to be seen what consequences the alleged cryptocurrency scam faces.

A copy of the original filing can be found here.