SEC Prices Man Driving Alleged Crypto Mining Rip-off

The Securities and Trade Fee (SEC) has filed accommodate versus Donald G. Blakstad for scamming buyers partly by way of an allegedly fraudulent crypto mining operation.

In a submitting Jan 8, the SEC alleged that Blackstad, 60, bilked more than $3.5 million from buyers of a few individual companies: an oil and gas business a automobile pieces keeping business and “Energy Sources International” (ESI), a purported cryptocurrency mining business whose Las Vegas datacenter has only just one worker: Blakstad.

The crypto mining operation exclusively took in some $550,000 from 5 individual buyers, all of whom had been informed by Blakstad that their funds would address products charges. On the other hand, the SEC alleges that Blakstad alternatively used approximately half the money for himself, at casinos, restaurants and hotels. 

The regulator further more alleges Blakstad held up the ruse by issuing each and every of the 5 buyers $60,000 checks as returns on their investments. 

Blakstad was previously billed final July in a individual insider investing scheme truly worth $6.2 million. 

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