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The market for cryptocurrencies has been growing rapidly over the last few years, and a growing number of investors are eager to make investments in digital assets. But, this market has also been subject to its fair share of frauds and fraudulent schemes, which has caused many investors to be careful and cautious about investing.
Leonardo Cositorto’s assertions that his company, Gen Zoe, is “no hoax,” which he expressed in a recent interview, have become one of the most contentious issues in the world of cryptocurrencies. The new arrests that have been made in connection with Gen Zoe have added fuel to the fire of the scandal that has surrounded the firm. In this piece, we will analyze both the statements that Leonardo Cositorto has made and the most recent events that have transpired in the Gen Zoe lawsuit.
Who is Leonardo Cositorto?
Gen Zoe was a firm that claimed to give investors services related to cryptocurrency trading. Leonardo Cositorto was the company’s creator and chief executive officer. According to his LinkedIn page, Cositorto has over a decade of experience working in the financial services business, with a focus on trading, portfolio management, and investment banking. In 2018, he established Gen Zoe and served as the company’s CEO until the authorities in 2021 forced him to shut down the company.
Claims Made by “No Scam”:
A video named “Gen Zoe: No Scam” was uploaded by Leonardo Cositorto to his own YouTube channel in the month of May 2021. In the video, Mr. Cositorto defended his business against charges that it engaged in fraudulent activity and reassured investors that their money would be protected. In addition to this, he said that the organization was in complete accordance with any and all applicable legislation and that it had a group of seasoned experts working to handle the monies contributed by investors.
These assertions were, however, called into question not long after they were made since the authorities in July 2021 shut down Gen Zoe. The business was suspected of conducting operations as an unlicensed investment advisor and cheating investors out of millions of dollars via fraudulent practices. According to the lawsuit filed with the SEC, Gen Zoe promised investors substantial returns on their investments via its bitcoin trading tactics, but instead utilized the clients’ money for personal costs and to pay off previous investors.
In August of 2021, the police in the United States stated that they had arrested three people in connection with the Gen Zoe investigation. The names Leon Zaslavsky, David Rae, and Philip Reichenthal were provided as these people’s identifiers. Reichenthal was accused with hindering the SEC’s investigation of Gen Zoe, while Zaslavsky and Rae were charged with securities fraud, wire fraud, and conspiracy to conduct securities fraud. Reichenthal was also charged with committing securities fraud.
According to the accusation, Zaslavsky and Rae were the principal architects of the plan, and Reichenthal supported them in hiding their tracks. Reichenthal is also accused of being a participant in the conspiracy. It is claimed that Zaslavsky and Rae fabricated a network of fraudulent and deceptive information in order to persuade investors to put their money into Gen Zoe. They also utilized the money from investors to pay for their own personal costs, such as expensive trips, jewelry, and luxury automobiles. The indictment additionally stated that the three persons had sought to hinder the investigation that was being conducted by the SEC by giving information that was both inaccurate and deceptive.
Where does the investigation against Gen Zoe go from here?
It has been determined that the arrests that have been made in the Gen Zoe case represent a major step forward in the investigation against the firm. Having said that, it is not yet possible to speculate on how the case will ultimately turn out. The persons who have been arrested are now waiting to go to trial, and it is possible that it will be some time before it is determined how extensively they were involved in the alleged fraudulent activity.
In the meanwhile, investors who have suffered financial losses as a result of Gen Zoe are continuing their pursuit of recompense for their losses. The Securities and Exchange Commission has requested that investors come forward and provide information regarding their interactions with the firm. In addition, the organization has cautioned investors to exercise extreme care while purchasing bitcoin and to carry out exhaustive studies before to purchasing any investment plan.
The example of Gen Zoe sheds light on the dangers that are there for investors who want to put their money into cryptocurrencies. Despite the fact that there is an opportunity for big gains, the market is also vulnerable to cons and fraud. While making financial investments, traders and financiers have to use extreme caution, and before putting their money into any plan, an in-depth study must be carried out.
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