Florida Investor Files Fraud Lawsuit Against Trading School
A Florida-based investor has initiated legal proceedings against a trading school located in Denver, asserting he fell victim to a fraudulent scheme that cost him $860,000. The plaintiff, Brian Firestone, alleges that the Alpha Stock Investment Training Center (ASITC), which was based in downtown Denver, colluded with a fraudulent cryptocurrency trading platform called CoinBridge Partners, which operated in the Cherry Creek area.
Details of the Allegations
In December, Firestone states he was contacted by an individual named John Smith, who claimed to be representing ASITC. Smith offered to instruct him in cryptocurrency trading and encouraged him to start with an initial investment of $500. The trading school’s now-defunct website indicated its address as 1660 Lincoln St. and prompted users to trade through CoinBridge, which falsely advertised having attracted $10 million from 600 investors. Firestone describes CoinBridge as a completely illegitimate trading platform in his lawsuit.
The legal documents elaborate that ASITC allegedly utilized a method called signal trading, in which supposed instructors would provide direct trading advice to participants like Firestone for execution through their accounts on CoinBridge. After his initial investment of $500 reportedly increased to $55,000, Firestone decided to invest an additional $50,000 in January, which he claimed escalated his account balance to an astonishing $2 million in a matter of weeks.
The Trading Downfall
However, his trading only briefly flourished; a poor trade slashed his account to $12,000, prompting him to wire $470,000 and to take a loan of $330,000 from ASITC to keep trading. Allegedly, his account then skyrocketed to $24.5 million until a supposed “system error” on March 9 compromised a trade involving USDT and wiped out his balance altogether.
In further desperation, Firestone borrowed an additional $1 million from ASITC. While his account then sat at $6.6 million, he faced difficulties repaying his debts, leading ASITC to close his account on May 1. The lawsuit accuses ASITC, CoinBridge, Smith, and its founder Raymond Torres of engaging in fraudulent activities, theft, and racketeering.
Industry Implications
Meanwhile, a legitimate entity named Coinbridge Partners based in Wyoming has distanced itself from any involvement in this alleged fraudulent activity. The situation sheds light on a broader trend in the cryptocurrency landscape, with CertiK co-founder Ronghui Gu revealing that in 2025, more than $2.1 billion was reported stolen in crypto-related incidents, largely due to compromised digital wallets and poor key management.
The industry is seeing an alarming transition from interventions in code to exploitations of user behavior, especially as phishing attacks have led to losses surpassing $1 billion in nearly 300 cases in 2024, highlighting the evolving threats in the crypto market.
