Many cryptocurrency investors have fallen victims one way or another of crypto Ponzi schemes.
This time, the orchestrators of the Crypto Ponzi scheme known as Zima Digital will receive their judgment.
The two men who are from Arizona, Zach Salter, 27, and John Michael Caruso, 28, duped more than 100 people of no less than $7.5 million for almost two years.
Zima Digital Ponzi scheme targeted major baseball league players
Among the victims of the Zima Digital Ponzi scheme were numerous major-league baseball players not excluding their families.
Salter and Caruso created a cryptocurrency investment firm called Zima Digital Assets.
They then used investors’ funds for their outrageous lifestyles.
The corrupt duo was traced and arrested by the United States Secret Service on January 30th.
Caruso’s alias was “Kryp+0 K!ng.” and referred to himself as the “Michael Jordan of algorithmic cryptocurrency trading.”
Salter, on the other hand, called himself a “serial entrepreneur” in the automotive and aviation industries.
Mansions, cars, and the lavish lifestyle
Caruso and Salter both lived in mansions with valuations north of $9 million.
Obviously, both men had no problems using other people’s money to fund their luxurious lifestyles.
While Caruso reported some earnings in 2018, his declared income was just $22,800. Also, he is the registered owner of a $200,000 2019 Lamborghini Urus.
According to the United States Department of Justice complaint, he also used another $350,000 on renting luxury vehicles, including a Ferrari, Aston Martin, and Rolls Royce.
Caruso also desired travel–on private jets. His preferred destinations included Aruba, Cabo San Lucas, Hawaii, London, New York and so on.
He also lost a whopping $1.4 million gambling in Las Vegas.
Despite being young, he had a long history of unsavory conduct. His criminal past comprised forgery, extortion, money laundering, and helping a criminal syndicate.
On his part, Salter reported no earnings in 2018. He was, however, surprisingly, able to acquire at least five luxury cars including a BMW, an Audi, two Mercedes, and a 1957 Chevy.
The constant flaunting of his riches on social media ended up being used as evidence against him.
According to Federal officials, the inquiry began after they obtained an anonymous complaint about Zima Digital Assets.