Beware of USFIA – Review Part 4

Steve Chen, who started USFIA, has died in prison.

Chen was sentenced to ten years in prison in 2021 after pleading guilty in 2020.

The inmate search feature of the Bureau of Prisons shows that Chen, who was 65, died on November 19. No one knows what killed Chen.

Chen, who was also known as “Boss” and “Li Chen,” started USFIA in 2013. The USFIA was based in California and mostly went after Asian Americans.

BehindMLM looked at USFIA in 2015 and found that it was a Ponzi points scheme called “GemCoin.”

The SEC shut down USFIA a few months after the review came out.

The first thing USFIA investors did was call for the murder of two victims who were helping.

At first, the SEC said that USFIA investors would have to pay $32 million in damages. This amount went up to $180 million because a court-appointed Receiver was looking into it at the time.

In 2017, Chen and USFIA, which was under Receivership, paid the SEC $200 million to settle civil fraud charges.

It is not clear when the DOJ started to look into USFIA and Chen. In February 2020, Chen pleaded guilty to one count of conspiracy to commit wire fraud and one count of not paying taxes.

On January 11, 2021, Chen was given a prison sentence.

Even though people lost money in Chen’s MLM Ponzi scheme, the sheriff and other law enforcement cosplayers at USFIA events are what people remember most.

At a USFIA event in September 2015, Chen’s security guards dressed like police officers and wore uniforms with badges that matched:

Chen, who was armed, said he was the Sheriff of GemCoin:

USFIA will also be remembered as one of the first big MLM crypto Ponzi schemes to be shut down in the US.

Most of the crypto industry as a whole is written off as fraud today, but in 2015, it was still the wild west. Crypto bros with business sense could find a lot of people to take advantage of.

OneCoin was still pretty new, and Dubai hadn’t yet become the hub for the financial crime that it is today.

We don’t see a lot of MLM Ponzi characters like Chen anymore, which is a shame.

MLM crypto Ponzi schemes are run by old nobody who hasn’t done anything important in their lives. They use old crypto “tech” while hiding out mostly in Dubai.

As MLM crypto Ponzi business models have become more and more stupid, so have the people who run them.

From 2013 to 2015, things were different. Mr. Chen here’s to you.

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