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A Fraudster Sentenced for Gold-Supported Crypto Scam

Prosecutors declare that the Swedish man defrauded investors more than $16 million.

A Swedish chap will have to spend 15 years in prison for running a crypto swindle project. The scammer claimed to pay stakeholders according to the gold price.

Roger Karlsson pleaded remorseful to money laundering, securities fraud, and wire fraud in March 2021. That was after being sued in the US after his Thailand arrest in 2019. The authorities deported him afterward.

The regulators charged Karlsson for operating EMS (Eastern Meta Securities), a firm that claims to run a crypto-investment service. Investors that utilized EMS services from 2012 – 2019 were to enjoy various attractive plans related to gold. For instance, users could realize returns equal to 1.15 Kg of gold after buying shares under $100.

Keep in mind that 1.15 kg gold valued over $45,000 in 2019. Today, it would be worth more than $58K.

The scam artists asked the investors to buy shares through digital coins such as BTC and ETH. Karlsson promised participants a 97% return if they fail to reach the promised value. However, the scammer guaranteed users that such scenarios are rare. That is why you need to act with care with any offerings in the crypto space.

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Karlsson built trust with users by ensuring the EMS operates as longs as it can. He consistently issued updates, providing asset reports and rebranding.

He also lied that massive single transactions would impact the global financial systems negatively. Also, he stated that his firm would alleviate payment delays by collaborating with the US SEC.

However, as usual, the lucrative promises turned out to be nothing. Investors saw zero returns while Karlsson escaped with the crypto funds and invested in a resort in Thailand. He also bought homes.

US prosecutor stated that investors lost more than $16 million.

Karlsson said that he could not afford to pay the suffered investors. The victims had to undergo financial crises, according to the US DoJ.

Besides spending 15 years in prison, the scam has to surrender his luxury resort and other properties. He also received a $16,263,820 monetary judgment.

Andre Louie (Spain)

Andre is a new writer for Tokenhell, writing in both English and Spanish. Andre loves cryptocurrencies and the blockchain / crypto world and has been into Bitcoin since 2012.

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