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Colorado trader scams investors out of $1.5m in Bitcoin

Legal

www.chepicap.com 26 March 2019 10:30, UTC
  
Reading time: ~2 m

Colorado native is now banned from trading BTC, after he lost $1.5 million in investors funds.

Daniel Todd Levine, based out of Englewood Colorado, told investors that they could buy discounted Bitcoin through him and get a significant return on their investments. The Financial Industry Regulatory Authority (FIRA) looked into these claims and according to CNBC, Daniel Levine was working with his brother to facilitate the purchase of BTC overseas from a private seller. The BTC would be bought discounted anywhere from 60-90%.

Investors then sent Levine $1.5 million, and Levine expected to make approximately $2 million through commission. This $1.5 million sent to Levine, went to his brother, who was living in Europe, and also happened to be a U.S. fugitive. Reportedly Levine’s brother is the one who ran away with the money.

Levine has a background in investing and being a financial advisor, so it is not entirely out of place that investors would trust him with this large sum of money. His background includes working at Morgan Stanley, but quitting mid way into the year after allegations were made against him. He then moved onto First Financial Equity Corp. but was terminated after allegedly failing to inform the company about the allegations against him.

Levine reportedly has returned some of the lost funds to the investors, but it is still unknown how much in total has been returned. Levine has signed a consent order, so he will no longer be participating in Colorado’s securities industry.

Read more: Bitcoin scammer claims to have stolen $812,000 worth of BTC over 4 years


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