Former New Jersey Officer’s Crypto Con: Law Enforcement Targeted In $623K Scam

Key Points:

• Former New Jersey police officer John A. DeSalvo faces SEC and criminal charges for orchestrating a crypto scam targeting law enforcement and first responders.
• DeSalvo fraudulently raised over $623,000 through unregistered sales of his Blazar Token.
• Misappropriation of investor funds, personal crypto wallet transfers, and home renovations characterize DeSalvo’s fraudulent activities.

Former New Jersey State Correctional Police Officer John A. DeSalvo is facing legal action from the U.S. Securities and Exchange Commission (SEC) and the U.S. Attorney’s Office for orchestrating a fraudulent crypto scheme targeting police officers and first responders.

DeSalvo allegedly raised over $623,000 from 222 investors through the unregistered sale of his self-created Blazar Token from November 2021 to May 2022.

Promising to revolutionize state pension systems for law enforcement and emergency workers, DeSalvo’s Blazar Token collapsed in May 2022, leaving investors empty-handed. He falsely assured investors that the token was registered with the SEC, leading them to believe they were guaranteed extraordinary returns.

The SEC’s complaint reveals that DeSalvo misappropriated the funds he raised, channeling them into his personal crypto wallets and even funding home renovations.

This isn’t the first instance of DeSalvo’s fraudulent activities, as an earlier scheme in 2021 saw him solicit investments for stocks, options, and crypto assets, resulting in a loss of $17,000 of the $95,000 raised from 17 investors.

Exploiting his background as a former lieutenant at the New Jersey Department of Corrections, DeSalvo gained the trust of potential victims in law enforcement circles. The SEC’s legal action charges him with violating securities laws and seeks penalties, disgorgement, and injunctive relief.

Simultaneously, the U.S. Attorney’s Office in New Jersey has brought criminal charges against DeSalvo. His deceptive tactics, misappropriation of funds, and false promises have drawn scrutiny from both regulatory and legal fronts.

As Coincu previously reported, the SEC took action against Titan Global Capital Management, a New York-based FinTech investment adviser, with misleading crypto asset advertising and compliance lapses.

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