U.S. federal prosecutors have charged Canadian citizen Nathan Gavin with operating a fraudulent investment scheme through the Discord platform. Gavin allegedly claimed to raise funds for investments in traditional finance and cryptocurrency markets, collecting over $42 million. Investigations revealed that most of the money was used to pay earlier investors, purchase valuable items, and settle personal credit card debts. Additionally, Gavin forged documents to obtain an $800,000 credit line from a fintech company for personal use. Between May 2022 and October 2024, Gavin and his associates encouraged investors to invest in “Grey Digital Capital Management Incorporated” and its “Grey Fund” products, falsely inflating their professional credentials, performance records, and assets under management. They showed investors fabricated reports claiming a fund return rate of up to 4,384%. Gavin was arrested in the UK, while the U.S. Securities and Exchange Commission (SEC) also charged him with securities fraud, noting that he continued submitting false documents during the investigation. This case highlights the rising trend of investment frauds in both cryptocurrency and traditional financial markets, where investors are lured by false promises of high returns. Investors are advised to conduct thorough due diligence and seek legal verification before engaging in any investment schemes.
Source: binance
