• Sam Bankman-Fried, FTX, SOL, CEL, XRP, ETH, etc., are a few high-profile crypto scams and scammers.
• Houston Attorney Andrew J. Cobos of the Cobos Law Firm is currently representing an elderly woman in a case involving a young pastor who promised to buy and safely store bitcoin for her.
• The pastor allegedly recreated the wallet after giving her the Trezor and transferred all of the bitcoin to a separate wallet that he controlled.
A case currently being handled by Houston Attorney Andrew J. Cobos of the Cobos Law Firm highlights the risk of investing in cryptocurrencies like Bitcoin. The case involves an elderly woman who, in 2017, was approached by a young pastor at her church who encouraged her to invest in Bitcoin with his help. The woman and the man entered into an oral agreement that she would transfer $80,000 to him and he would use her money to purchase Bitcoin and safely store it for her.
The elderly woman alleges that the pastor maintained a copy of the seed phrase card and recreated the wallet after giving her the Trezor, and thereafter transferred all of the bitcoin to a separate wallet that he controlled. The woman contacted the police and filed a lawsuit against the pastor, who is now facing trial in Harris County, Texas in Spring 2023. The plaintiff in the case accuses the pastor of stealing her Bitcoin through the knowledge and use of her private keys.
The elderly woman’s case serves as a warning to those considering investing in Bitcoin or other cryptocurrencies. It is important to be aware of the potential for scams and scammers, both high-profile and low-profile. It is also important to do your own research and take the necessary precautions to keep your information and investment secure. As Cobos says, “Investors should conduct their own due diligence and research before investing in any cryptocurrency, and should consult an attorney if they have any questions about a transaction or any other legal matter.”