Justin Rohrlich of Quartz reports that two people have been arrested and are accused of defrauding more than 100 investors in a cryptocurrency Ponzi scheme. Apparently multiple former major league ballplayers — unnamed thus far — were victims:
The US Secret Service arrested John Michael Caruso on Jan. 30. Caruso is the founder of Zima Digital Assets, a blockchain and cryptocurrency investment firm, and has dubbed himself the “Michael Jordan of algorithmic cryptocurrency trading.” Authorities arrested Zachary Salter, an aspiring R&B singer who co-founded Zima with Caruso, the same day.
I’m guessing they went with the “Michael Jordan of algorithmic cryptocurrency trading” and called the company “Zima” because they were targeting retired, Gen-X era ballplayers. If they were going after current ballplayers I presume they’d bill themselves as the “LeBron James of cryptocurrency trading” and call the company “White Claw.” It’s all about branding.
Anyway, this is not the first time ballplayers have been caught up in a Ponzi scheme and it likely won’t be the last. When you have a lot of money and a lot of time on your hands, you’re likely to be sought out by these kinds of dudes.
You can see the legal documents in play by clicking through to the Quartz article.