- The company Justby
- Presented itself as a crypto-investment site
- but it actually scammed money from gullible victims
The Commodity Futures Trading Commission (CFTC) filed a complaint against California-based Justby International Auctions.
According to the regulator’s website, the firm is guilty of a fraud called “hog slaughter.. It’s a type of scam where criminals gain the trust of the victim through emotion. It’s not uncommon for scammers to engage in years of amorous correspondence to at some point talk a person into sending money.
Justby International Auctions is accused of embezzling $1.3 million in client funds. Their investors sent the company ostensibly to invest in cryptocurrency and Forex market. In fact, employees spent the money on personal needs and luxurious life. At least 29 citizens became victims of fraud.
The owner of Justby, Kunwen Zhu, will now face trial. Also involved in the investigation will be other company employees who, under the guise of lawyers, corresponded with clients.
“People sought to avoid isolation from the pandemic and to communicate online.. Fraudsters saw this as a new place to prey on and take advantage of people,” commented CFTC Enforcement Director Ian McGinley.
Remind that in February, fraudsters brazenly stole $4 million worth of cryptocurrency from a hotel in Rome. They made an appointment with the investor, asked him to show his crypto-purse balance, and then took pictures of his account details.
They made an appointment with the investor, asked him to show his crypto-purse balance, and then took pictures of his account details.