The rapid growth of the crypto currency market brings many innovative initiatives and technology, as well as fraud and fake projects. This time the center includes Amalgam Technologies, a so -called Blokzincir company based in New York. James Block, the founder of the company, is accused of collecting about $ 1 million with fake promises from investors. According to a statement made by the US Department of Justice (DEJ), Block convinced investors to a project in which they did not develop a real product and in fact a working blocky infrastructure.

According to the investigation documents, Block claimed that the project called Amalgam to investors offered a “revolutionary blocky solution .. In the presentation files sent to potential investors, great promises were made about the project: decentralization, high scalability, safety solutions and usage opportunities at the institutional level… However, all these claims were completely fiction. It was revealed that there was no development activity or engineering team behind the project.

It was determined that the collected funds were used for personal expenditures, not for the development of the company. In financial analysis, investor money was used for luxury restaurant expenditures, five -star hotel payments, branded clothing products and overseas holidays. Moreover, it is claimed that Block is trying to hide these traces with crypto currency transfers and dividing the money into different wallets and money laundered.

Block’s charges; securities, electronic fraud, money laundering and misleading the investor. Each of these crimes can bring about many years of imprisonment. Doj officials say that Block can be sentenced to up to 20 years of imprisonment.

This case aroused a great impact in the crypto community. According to experts, the amalgam case reveals the risks experienced by thousands of people who invest without the necessary investigations. It is reminded that basic elements such as team information, open source code, community feedback and regulation compliance should be evaluated especially before investing in early stage projects.

Another important conclusion for investors is that not only technical jargon and futuristic promises, but the transparency, sustainability and real uses behind the project. The amalgam event shows that the crypto world gives not only technological, but an ethical responsibility exam.