Investor Loses $860K in Alleged Crypto Trading Scam
A Florida investor, Brian Firestone, has filed a lawsuit alleging he was defrauded of $860,000 by a Denver-based crypto trading school and a fake exchange. This case underscores the risks of signal trading and emphasizes why due diligence matters in cryptocurrency markets.
Details of the Alleged Scam
The lawsuit claims Alpha Stock Investment Training Center (ASITC) and CoinBridge Partners, a fraudulent exchange, lured Firestone with promises of extraordinary profits through signal trading. This method involves receiving precise trade instructions from self-described ‘professors’ at specific times.
- Initial $500 investment reportedly grew to $2 million
- Alleged system error erased the entire balance
- Lawsuit names ASITC, CoinBridge, and individuals in fraud charges
How to Avoid Crypto Scams
Security experts urge caution when evaluating trading platforms. CertiK co-founder Ronghui Gu warns, ‘We’re seeing alarming trends where attackers increasingly target user behavior rather than system vulnerabilities.’
- Thoroughly vet any trading education program or exchange
- Be skeptical of platforms guaranteeing profits
- Prioritize secure cryptocurrency storage solutions
Current Crypto Fraud Landscape
This case reflects broader security challenges in cryptocurrency. In 2025 alone, scams have resulted in over $2.1 billion in losses, with phishing and wallet compromises being the most common attack vectors.
