New Jersey Man Files Lawsuit Alleging Crypto Trading Scam Resulted in $208K Loss

News | June 26, 2024 By:

On Thursday, June 13, 2024, Pratik Shah, a resident of Middlesex County, filed a lawsuit in the US District Court for the District of New Jersey against Ryan Adams alleging securities fraud, conspiracy to commit fraud, misrepresentation, and unjust enrichment.

According to the complaint, Adams held himself out online as a professional trader and financial advisor at a major bank, when in fact he was unlicensed. Shah first learned of Adams’ claimed investment services through targeted cryptocurrency ads on social media. Adams owned a private messaging group that offered trading advice focused on digital currencies.

The lawsuit states that Adams and his assistant helped Shah set up an account on a cryptocurrency trading platform in April 2023. Over the next few months, Adams provided daily market commentary and personalized investment plans through direct messages. Shah alleges he was induced by Adams into following various trades involving bitcoin and other digital assets, based on profit projections of up to 1500% returns within 30 days.

However, instead of gaining as promised, Shah claims the trades Adams directed him to make in May and June resulted in losses of over $208,000 due to unfavorable market movements. According to the complaint, when Shah expressed concerns about the losses on the group chat, he was promptly removed from the messaging platform by Adams.

The filing accuses Adams of fraudulently operating an unregistered investment scheme and securities business, where he received commissions, without proper licenses. If the allegations prove true, the lawsuit asserts Adams violated state consumer protection laws and was unjustly enriched by Shah’s monetary losses. The complaint seeks full damages of over $208,000 lost plus additional punitive amounts.

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