Oklahoma Man Files $180K Lawsuit Against Alleged Crypto Scammer

News | May 28, 2024 By:

On Tuesday, May 14, 2024, Robert Blair, Jr. filed a three-count complaint in the United States District Court for the Western District of Oklahoma against Logan E. Riesen.

According to the complaint, Blair owns and invests in various digital currencies and blockchain technologies, also known as cryptocurrencies. In March 2024, Blair joined an online server called CryptosRUs on the social media platform Discord to explore further investment opportunities in cryptocurrency. CryptosRUs server was founded by a well-known crypto figure and includes about 750,000 followers on YouTube.

Within the server, Blair was approached by another user going by the name “CryptoLifer182” about a potential new digital currency project called “WAAG.” However, the project did not move forward. CryptoLifer later contacted Blair individually to discuss staking, a way for crypto holders to earn rewards, using another cryptocurrency called Big Red that is based on blockchain technology.

The complaint alleges that CryptoLifer, whose real identity is Logan Riesen, orchestrated two fraudulent schemes targeting Blair. In the first scheme, CryptoLifer allegedly created a fake account posing as the lead developer of Big Red in Telegram, a messaging platform. CryptoLifer then provided Blair instructions on how to stake Big Red along with a transaction address that was actually controlled by CryptoLifer. Blair transferred his holdings of Big Red to this address, believing it to be the official staking pool. CryptoLifer then reportedly sold the funds for personal gain.

In the second, simultaneous scheme, CryptoLifer allegedly created a fake account imitating the founder of CryptosRUs, George Tung, to further discuss the proposed WAAG project. CryptoLifer, through this fake account, solicited an investment from Blair in WAAG by providing a transaction address for cryptocurrency Solana. However, this address also directed to CryptoLifer’s own wallet. CryptoLifer then quickly liquidated the funds received, which were tracked to the Coinbase exchange platform.

The complaint brings three counts – fraud, conversion, and money had and received – against Riesen and seeks compensatory and punitive damages in excess of $180,000 representing Blair’s losses. The case raises important issues around identity theft and deception in online cryptocurrency communities.

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