Co-founder of fraudulent crypto scheme Zima Digital Assets pleads not guilty

Maria Nikolova

Zachary Salter, who claims he co-founded Zima Digital Assets along with Kryp+0 K!ng John Michael Caruso, has pleaded not guilty in a fraud case.

Shortly after “crypto king” John Michael Caruso pleaded not guilty, another of the operators of fraudulent cryptocurrency scheme Zima Digital Assets has submitted the same plea.

On March 4, 2020, arraignment as to Zachary Salter, a co-founder of Zima Digital Assets, was held at the Arizona District Court. Salter entered plea of NOT guilty to all pending counts. Jury Trial has been set for 4/7/2020.

John Michael Caruso, 28, of Scottsdale, Arizona, and Zachary Salter, 27, of Paradise Valley, Arizona, were arrested on January 30, 2020, and charged by criminal complaint with conspiracy to commit wire fraud and money laundering.

The Indictment in this criminal case alleges that Caruso and Salter operated Zima Digital Assets, a purported cryptocurrency investment fund, which, in reality, was a fraud. Caruso and Salter received more than $9 million from victims but the funds were not used for the purchase of cryptocurrency or other “blockchain based assets”. Instead, Caruso and Salter returned about $2 million of the deposits to early investors as purported investment profits. The rest of the money they spent on extravagant items, such as private jets, vacations, luxury car rentals, and casino gambling.

The Indictment enlists a raft of misrepresentations made by the duo behind Zima Digital Assets, including false statements in the contracts with the investors, as well as false claims in direct messages to investors.

If convicted of one or more of the offenses in the Indictment (that is, conspiracy to commit wire fraud and money laundering), the defendants will also have to forfeit all property derived from the offenses.

Those who believe they may have invested money with Caruso or Salter, or their alleged cryptocurrency investment fund, Zima Digital Assets, are advised to contact Special Agent Lamerson or Special Agent Roper at the U.S. Secret Service, Phoenix Field Office, via telephone at (602) 640-5580.

Read this next

Interviews

Exclusive: Autochartist CEO Ilan Azbel Delivers Insight on AI at iFX EXPO LATAM 2024

In an insightful interview with FinanceFeeds at iFX EXPO LATAM 2024, Ilan Azbel, CEO of Autochartist, discussed the evolution of trading technology, effective trader engagement strategies, the integration of AI in trading analytics, and the cautious approach of regulated brokers towards its adoption.

Market News

Weekly data: Oil and Gold: Price review for the week ahead.

This preview of weekly data looks at USOIL and XAUUSD where economic data coming up later this week are the main market drivers for the near short-term outlook.

Crypto Insider

Octa’s insights: the approval of spot Ethereum ETFs is not going as planned.

The approval of spot Bitcoin exchange-traded funds (ETF) by the U.S. Securities and Exchange Commission (SEC) in January 2024 triggered a substantial rise in the bitcoin price. Also, interest in the proposed spot Ethereum ETF has increased

Industry News

Bursa Malaysia introduces Trading Reminders

The Trading Reminder flag aims to alert investors to exercise caution when encountering a stock displaying persistent unusual price and/or volume movements after the listed company’s UMA response.

Industry News

21 Republican representatives want to “End the Fed”

“Americans are suffering under crippling inflation, and the Federal Reserve is to blame.”

Retail FX

Scope Markets launches unleveraged trading

“Whilst our traditional contract for difference (CFD) products continue to prove incredibly popular, the Invest account is unleveraged and only allows ‘long’ positions to be taken, a combination that significantly reduces the risk of capital losses.”

blockdag

Unlocking Profit Potential: Earn Returns with DecodeEX Experience Bonus!

DecodeEX, the innovative brokerage subsidiary of Decode Global, announced its experience bonus campaign, offering every user the opportunity to maximize their strategic trading potential with up to $10,000 in experience bonus. 

Market News

Pretiorates’ Thoughts 28 – Precious metals and base metals out of control

Ten days ago we mentioned in Pretiorates’ Thoughts 26: Chapter 2 should start with Precious Metals.

Retail FX

Webull launches discount brokerage in Malaysia

“Making investing more inclusive and accessible to all, Webull Malaysia brings best-in-class tools and information to empower investors of all levels with knowledge and skills to help them make better investment decisions and achieve their investment goals.”

<