A crypto venture founded by a 51-year-old Jose Angel Aman (a Crypto Coin co-founder from Washington DC) is now under scrutiny by the US authorities after being suspected to be a Ponzi Scheme. The owner has been promoting his crypto scheme as an e-commerce platform that will use blockchain technology to design the first digital currency associated diamond. Arman was promoting its ICO tokens to investors and had already made significant sales.

Arman is being accused of perpetrating a fraudulent scheme and operating illicit business to raise more than $ 25 million from crypto-investors to develop a blockchain-based platform, which will facilitate the trading of diamond and other precious metals.

Also, the cyber unit of US securities and exchange commission (SEC) went ahead and did diligent investigations over the alleged Ponzi Scheme upon which they made a decision to freeze all the assets of the company and filed charges against its founder. The project was branded by the security agency as a pure typical pyramid scheme.

In his defence, Arman said, his venture had nothing to do with Ponzi scheme but rather a lucrative investment meant for veteran crypto traders. He went on to add that he had established unquestionable Argyle Coin where investors are currently getting returns. Also, he was quoted saying that the funds raised through ICO will be used in the development of the e-commerce platform upon which precious mental will be traded.

In an attempt to show the legitimacy of the purported Ponzi Scheme. Arman said the venture will be the World’s first digital currency whose value will be backed up with a real diamond. Thus, investor’s investment is deemed risk-free as the project is backed up with diamond kept in a safe deposit box.

Morgan Ortagus, SEC spokesperson declined his claims and said that some of the development money raised had already been used to pay for Arman’s expenses while the remaining was used to pay returns to investors in the said Argyle Coin project that also operates in a similar Ponzi concept. Later it was alleged that the company provided an illegitimate reinvestment agreement. Arman used the same tactics to accumulate more investors and money on a large scale.

Finally, crypto investors to remain vigilance to avoid similar Ponzi schemes in future.”Let none  be lured to a risk-free business that promises super normal profits and other lucrative deals.” Morgan investors.” SEC spokesperson said in his final remarks.