A shocking case has emerged from Florida, where a man reportedly lost approximately $860,000 to a dubious crypto trading school based in Denver. The victim’s lawsuit alleges that the school funneled him into a fraudulent crypto exchange, which promised substantial returns but ultimately led to a massive loss. This incident casts a spotlight on the pervasive risks and deceptive practices that continue to plague the cryptocurrency investment landscape.
Lawsuit Exposes Shady Crypto Operations
Brian Firestone, the Florida man at the center of this ordeal, has filed a lawsuit in federal court. He claims that the Alpha Stock Investment Training Center (ASITC), operating out of downtown Denver, conspired with a fraudulent crypto exchange known as CoinBridge Partners in Cherry Creek. This legal action seeks to expose the intricate web of deception that cost Firestone a significant portion of his wealth, bringing serious allegations of fraud and racketeering.
The Deceptive Lure of “John Smith”
According to Firestone’s account, he was first approached in December by an individual named John Smith, who purported to represent ASITC. Smith offered to tutor Firestone in crypto trading, beginning with basics and progressing to in-depth technicalities. As a further enticement, Smith even provided Firestone with a $500 gift to kickstart his learning process, a manipulative tactic designed to draw him deeper into the elaborate scam.
ASITC and the Fictitious CoinBridge
The now-defunct website of Alpha Stock Investment Training Center listed its address as 1600 Lincoln St. The school reportedly directed its participants to conduct all their crypto trading activities through CoinBridge, which falsely advertised raising $10 million from 600 investors. Firestone’s lawsuit explicitly states that CoinBridge was a fabricated entity, merely masquerading as a legitimate exchange to facilitate the scam.
The “Signal Trading” Deception
The lawsuit details ASITC’s alleged use of a method known as “signal trading.” Participants in ASITC classes would receive clear trade instructions via messages from “professors” at various times. Students were then expected to meticulously follow these instructions, executing trades directly through their CoinBridge accounts, unaware they were being led into a meticulously planned fraudulent scheme.
Initial Gains Lead to Deeper Investment
Firestone’s initial $500 investment, gifted by Smith, quickly appeared to balloon to $55,000. This seemingly impressive early success prompted him to invest an additional $50,000 in January. Within weeks, his CoinBridge balance purportedly soared to $2 million, leading Firestone to express immense gratitude to his “professor,” text messages showing his excitement about the “outstanding” results.
The Downward Spiral: Massive Losses Unfold
However, Firestone’s fortunes took a drastic turn after a losing trade plummeted his balance back to $12,000. In a desperate attempt to recover, he wired $470,000 in cash and took out a $330,000 loan from ASITC to continue trading. Despite an apparent rise to $24.5 million on CoinBridge, a USDT trade on March 9 failed to execute, leading to his entire balance being erased, which Firestone believed was a “system error.”
Legal Action and Broader Crypto Scam Trends
Two days after the calamitous trade, Firestone borrowed another $1 million from ASITC, bringing his total loan to $6.6 million. However, he was unable to repay, as ASITC allegedly shut down his account on May 1. Firestone’s suit accuses ASITC, CoinBridge, Smith, and founder Raymond Torres of fraud, racketeering, and theft, while the legitimate CoinBridge Partners in Wyoming has denied any connection. This incident mirrors a broader trend, with over $2.1 billion stolen in crypto-related incidents since early 2025, largely due to wallet breaches and phishing attacks, indicating a shift from platform-based hacks to targeting individual users.
