N.J. Ex-Corrections Officer Allegedly Ran Crypto ‘Pension’ Fraud

A former New Jersey corrections officer allegedly told investors that his Blazar cryptocurrency security would eventually replace traditional state pension systems, according to an SEC complaint.

The scheme was one of two frauds targeting members of law enforcement and emergency services, the Securities and Exchange Commission said. The agency filed its suit against the former officer, John DeSalvo, on Wednesday in the US District Court for the District of New Jersey.

DeSalvo’s first investment fraud, begun in January 2021, raised $95,000, the SEC says. He lost some of the money on speculative investments and “then misappropriated the remaining $78,000 by, ...