The US SEC has accused former New Jersey Department of Corrections Lieutenant John DeSalvo of fraudulently using the Blazar token, which was created for police, firefighters, and medics.

The US Securities and Exchange Commission (SEC) claims that from November 2021 to May 2022, John A. DeSalvo raised $623,388 from 222 investors through the sale of his own Blazar token. This crypto asset was created specifically for police officers and first responders. DeSalvo said Blazar would replace traditional public pension systems and promised investors big returns.

DeSalvo claimed that the Blazar token was the first crypto asset that could be purchased with payroll deductions every week. The creator of the token also made false registration claims with the SEC, when in fact he did not receive regulatory approval. Despite announcing an initial “lock-in” period for investor funds, after listing on decentralized exchange PancakeSwap, DeSalvo sold 41 billion Blazar tokens worth $51,000 in May 2022. By May 22, almost two weeks after these sales, the Blazar token had lost its value. , collapsing to zero.

“The sale of a large volume of Blazar tokens put strong pressure on the price of this crypto asset, which led to its collapse and significant losses for investors,” the SEC said.

The regulator demanded a permanent ban on DeSalvo’s activities in relation to securities, the imposition of an administrative fine and the seizure of illegally obtained funds.

The SEC recently fined investment firm Titan Crypto Capital Management $1 million for making false statements and withholding information from investors. This month, the agency also secured a temporary freeze on the assets of the crypto company Digital Licensing Inc, which the SEC also accused of fraud.