Florida Investor Loses $1M Life Savings to Sham Crypto Academy—Here’s How to Avoid the Same Fate
Crypto education scams just hit a grim new milestone—a Florida retiree got swindled out of nearly seven figures by a fraudulent 'trading academy.'
How the scam worked: Promising exclusive access to 'proven' strategies, the operation used classic pressure tactics to extract maximum funds before vanishing. No audits, no verifiable track record—just slick marketing preying on FOMO.
The bitter irony? This happened while institutional players like BlackRock are securing trillion-dollar ETF approvals. Mainstreet investors keep getting the short end while Wall Street codifies the rules.
Protect yourself: Verify credentials through FINRA's BrokerCheck, demand transparent on-chain performance proofs, and remember—if it sounds too good to be true in crypto, it's probably a scam wrapped in a whitepaper.
Fake Trading School Scheme
Based on reports, the operation was run by Alpha Stock Investment Training Center, or ASITC, in partnership with a so-called exchange called CoinBridge.
The school charged students for lessons on “signal trading,” and CoinBridge claimed it had raised $10 million from 600 investors. Both names gave off an air of trust. But no real exchange existed. All trades went through the scammers’ own platform.
Phony Denver crypto school robbed Florida man of $860K, he says https://t.co/ni0vwaOjj8
— The Denver Post (@denverpost) June 21, 2025
Signals And Small Wins
According to the lawsuit, instructor John Smith gave the victim, Brian Firestone, a $500 “gift” in December. That small amount jumped to $55,000 in a short time. He saw the number on his screen and felt hopeful.
Next, he put in another $50,000 in January. Suddenly, his balance read $2 million. He messaged Smith, “I’m blown away by these results.” Those early wins convinced him the system worked.
Then came the risky part. He wired $470,000 from his bank account and borrowed $330,000 from ASITC to keep the trades going. His balance climbed all the way to $24.5 million.
He said he felt on top of the world. He believed the training had unlocked a secret. But at that point, he had lost control over his own money.
The turning point happened on March 9. A USDT trade failed, and the platform froze. “I can’t close it,” he texted Smith, blaming a glitch. Within minutes, his entire balance was gone. He discovered his funds had been drained.
Now, he’s suing CoinBridge and ASITC in a US court. He wishes to get his money back and expects the suit to bring to light the individuals behind the scam.
According to his lawyers, the school deceived him at every stage, keeping secret the information that they were in control of the exchange and the signals.
Featured image from Unsplash, chart from TradingView
