[2015-09-11] FBI investigates a digital currency-related scam in California

[milaliss]

FBI investigates a digital currency-related scam in California
An Arcadia City-based company, USFIA promoting a new cryptocurrency Gemcoin is being investigated by the U.S. authorities in connection with the alleged fraud.
http://www.coinfox.info/news/law-and-order/3023-arcadia-gemcoin

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[RustyNomad]

They said....

“The GEMCOIN created by USFIA, is now positioned as the best alternative to Bitcoin because today it is the only digital currency with AFG’s support, based on a real measurable value: the equivalent in rare gemstones (Amber).”

but....

Gemcoins can only be redeemed for USFIA's products and services.

How can they claim that their Gemcoin has more value than bitcoin if it cannot even be used anywhere except than for their own services and or products, clearly a scam.

[TraderTimm]

For those not familiar, in the USA there are several locked-in sales scams that involve a membership to a given "club", but you're restricted only to their merchandise, which is invariably marked up for easy profit. These shopping clubs frequently appear in states with high levels of general fraud activity, such as California, Florida, etc...

This "GemCoin" scam is similar, locking you into their ecosystem while the founders get to collect the cash funneled into the system. Nothing new under the sun, even in crypto-land...