Crypto Ponzi scheme took MLB players for millions — Quartz

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The self-styled “Kryp+0 K!ng” and his business partner defrauded more than 100 investors, including former professional baseball players, out of at least $7.5 million over the past 18 months, according to a complaint filed in Arizona federal court last week.

The US Secret Service arrested John Michael Caruso on Jan. 30. Caruso is the founder of Zima Digital Assets, a blockchain and cryptocurrency investment firm, and has dubbed himself the “Michael Jordan of algorithmic cryptocurrency trading.” Authorities arrested Zachary Salter, an aspiring R&B singer who co-founded Zima with Caruso, the same day.

Investigators said that “numerous victims” caught in the elaborate scam were former Major League Baseball players and their families. The players themselves are not identified in court documents. Other victims are described as senior citizens, such as the 76-year-old who gave the two men $200,000 to invest in cryptocurrency and an 86-year-old who entrusted them with $60,000.

The government believes the $7.5 million is just a portion of their total haul, and that the pair may have stashed additional ill-gotten…

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