Over 150 people were duped by an alleged $35 million crypto ponzi scam in the United States. The investors of the crypto Ponzi scheme have filed an <a href="https://www.law360.com/articles/1259539/investors-accuse-crypto-trio-of-35m-ponzi-scheme">action class lawsuit</a> against Wells Fargo Advisors, arguing the firm did not pay attention to the ventures of an employee charged among the key perpetrators.

Wells Fargo Advisors is a subsidiary of Wells Fargo which is at the moment the 9th most well-known brokerage firm in the United States. The victims of the<a href="https://www.cryptoknowmics.com/crypto/doj-charges-three-men-in-alleged-722m-crypto-mining-fraud/"> crypto Ponzi scheme</a> claim that the firm did not look into the illicit activities run by James Seijas, who worked as a financial adviser in the firm.

Per the filing, Seijas together with his founding colleagues, Quan Tran; a certified general surgeon and Michael Ackerman, a former UBS securities employee; formed Q3 back in 2017. The aim of the entity was to raise funds for <a href="https://www.cryptoknowmics.com/crypto/the-us-fed-court-sentence-citizen-for-funding-isis-using-bitcoin/">crypto</a> trading.
<h2>Crypto Ponzi scheme proceeds were deposited in personal accounts</h2>
The Florida trio lured investors, more so doctors linked to Tran to participate by contributing funds. Q3 first raised over $1 million before it was then turned into a limited partnership. Afterwards, the partnership raised an additional $33 million all over the United States; from 150 people as per the court filing.

Moreover, the victims claimed that only $10 million was dedicated to<a href="https://www.cryptoknowmics.com/crypto/top-crypto-influencers/"> digital currency</a> trading while the rest was deposited to the founder's personal accounts. In addition, $4 million meant for licencing fees, ended up in the trio’s personal bank accounts.

According to the lawsuit, Seijas utilised his ties with Wells Fargo to lure investors to invest their funds in Q3. As per his LinkedIn profile, Seijas worked as a financial adviser to Wells Fargo Advisors; for five years until May 2009.  Victims argue that the firm should have checked into the outside activities by one of their employees; as per the company's employment policy.

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Ex-Wells Fargo Advisors Personnel Indicted over $35M Crypto Ponzi Scheme

Over 150 people were duped by an alleged $35 million crypto ponzi scam in the United States. The investors of the crypto ponzi scheme have filed...%

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Ex-Wells Fargo Advisors Personnel Indicted over $35M Crypto Ponzi Scheme

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