The AI startup founder was certain it was the $8 million investment offer until scammers siphoned $50,000 out of his crypto wallet.
The scam operation was highly organized and involved a series of video calls with at least four scammers.
A screenshot from the video when alleged fake investor stole wallet assets from AI startup founder
An AI startup founder was approached by some investors, claiming to have ties with multiple billionaire families, with an offer of a massive investment. Although they were very convincing, the startup founder ended up losing about $50,000 only to realize that he was duped by an alleged organized scammer group.
According to Dr Daniel Veidlinger, a professor at California State University, Chico, and an investor in the unnamed AI startup, the scammers approached the startup’s founder with a $8 million investment proposal and then scammed the founder of about $50,000 in crypto.
The startup CEO coincidently recorded the Zoom call over which the scammers tricked him to send the cryptocurrencies. However, the startup and the founder remained anonymous.
Bait and Hook: A Sophisticated Scam
The scammers’ approach as fake investors was highly organised, Dr Veidlinger's account showed. At least four individuals were involved in the scheme.
In mid-June, one of the scammers, posing as an “International Relationship Manager” of an asset management company, contacted the startup’s CEO, expressing interest in investing in the company.
After further communication and the execution of a non-disclosure agreement (NDA), the initial scammer introduced the startup CEO to another scammer posing as the portfolio manager of the so-called asset management firm. This individual claimed to be a member of two billionaire families, one on his father’s side and the other on his mother’s side.
This second scammer held Zoom calls with the startup CEO and expressed interest in investing USD 5 million in the company. However, he abruptly withdrew from discussions, citing an unspecified “personal emergency.”
The first scammer then introduced a third individual, who presented himself as the CEO of the fake asset management company and claimed to be the “nephew” of a billionaire Swiss art dealer.
Notably, Luxembourg’s financial regulator had flagged the website of the purported asset management firm for fraudulent activity. However, the regulatory warning came after the people operating the website allegedly scammed the AI startup.
Luxembourg Financial Regulator's (CSSF's) Warning About Tesalia Asset Management
According to Dr Veidlinger, this third scammer continued to promise a USD 5 million investment in the AI startup. He claimed to hold EUR 5 million in cash that he intended to invest via a convertible debt instrument to avoid certain Swiss tax liabilities.
After negotiations over several Zoom calls, the fake investors increased their supposed investment to USD 8 million. The startup CEO even engaged a corporate law firm to draft an investment agreement, which the scammers approved.
A week after receiving the agreement, the scammer posing as the CEO claimed that his CFO had advised him to set aside USD 1.2 million—the total interest on the USD 8 million convertible debt investment—in a cryptocurrency wallet for three months for regulatory compliance. He further stated that this amount would be drawn from his initial investment, presenting this as part of the investment process.
Catch: Fiat Investment to Crypto Wallet Request
The scammers then moved to the “catch” stage, making an unusual request. They asked the startup CEO to create a cryptocurrency wallet and deposit at least USD 400,000 into it to prove the startup’s financial capability, Dr Veidlinger pointed out.
The startup CEO, unable to use company funds, offered to deposit USD 50,000 of his personal funds. At this stage, Dr Veidlinger, an investor in the startup, was asked to assist in setting up the wallet.
Dr Veidlinger initially created a Coinbase wallet, deposited approximately USD 51,000 in USDT, and shared the wallet details with the scammers. However, the scammers claimed the wallet could not be verified on the blockchain and asked for the funds to be transferred to a Trust Wallet address.
Although Dr Veidlinger complied and the funds were verified on Trust Wallet, the scammers then requested the funds be stored on Atomic Wallet. Despite finding this unusual, Dr Veidlinger agreed.
During a subsequent Zoom call, the scammer posing as the CEO introduced another individual, referred to as his nephew, who asked to verify the funds on Atomic Wallet. Although the funds had already been verified on Etherscan, the startup CEO complied.
The scammers then requested a live transaction during the Zoom call, as per Dr Veidlinger. They instructed the startup CEO to send USD 5 in USDT from his wallet to theirs, asking him to manually input the amount and scan a QR code. However, the QR code embedded the transaction amount, overriding the manually entered amount. As a result, the startup CEO inadvertently sent nearly USD 50,000 in USDT.
The scammers exploited a basic vulnerability in Atomic Wallet interface. Although the startup CEO manually entered USD 5, the QR code embedded a higher transfer amount, which appeared as USD 5 on the confirmation screen but sent USD 50,000 in reality.
The startup CEO confronted the scammers, who refused to return the funds and subsequently cut off all communication.
“The day of the theft—August 23, 2024—would have been the last time startup CEO's ever communicated with the scammers,” Dr Veidlinger told Finance Magnates. “They did their best to first deny the theft and then to pressure him (the startup founder) not to public with the details and recordings... When scammers realized they could not dissuade startup's CEO from going public, they broke off all contact.”
Dr Veidlinger confirmed to Finance Magnates that the stolen funds could not be recovered. The funds were moved in small amounts to over a dozen destinations and cashed out on two exchanges: Bitget and Binance. Dr Veidlinger, who managed the crypto wallet, and the startup also filed complaints with the law enforcements in North America and Europe, however, none of them receive any update on the actions. They also reported the interface vulnerability to Atomic Wallet, only to receive a scripted message from the support team.
“Even though the startup has engaged a law firm, it has been advised that probability of funds recovery is practically zero given multiple jurisdictions involved. Never mind the difficulty of bringing litigation against people whose identity and domicile we do not know,” Dr Veidlinger.
Finance Magnates reached out to Atomic Wallet to know about the vulnerability and also Tesalia Asset Management, the platform Dr Veidlinger accused to be operated by the scammers, but did not receive any reply from either.
An AI startup founder was approached by some investors, claiming to have ties with multiple billionaire families, with an offer of a massive investment. Although they were very convincing, the startup founder ended up losing about $50,000 only to realize that he was duped by an alleged organized scammer group.
According to Dr Daniel Veidlinger, a professor at California State University, Chico, and an investor in the unnamed AI startup, the scammers approached the startup’s founder with a $8 million investment proposal and then scammed the founder of about $50,000 in crypto.
The startup CEO coincidently recorded the Zoom call over which the scammers tricked him to send the cryptocurrencies. However, the startup and the founder remained anonymous.
Bait and Hook: A Sophisticated Scam
The scammers’ approach as fake investors was highly organised, Dr Veidlinger's account showed. At least four individuals were involved in the scheme.
In mid-June, one of the scammers, posing as an “International Relationship Manager” of an asset management company, contacted the startup’s CEO, expressing interest in investing in the company.
After further communication and the execution of a non-disclosure agreement (NDA), the initial scammer introduced the startup CEO to another scammer posing as the portfolio manager of the so-called asset management firm. This individual claimed to be a member of two billionaire families, one on his father’s side and the other on his mother’s side.
This second scammer held Zoom calls with the startup CEO and expressed interest in investing USD 5 million in the company. However, he abruptly withdrew from discussions, citing an unspecified “personal emergency.”
The first scammer then introduced a third individual, who presented himself as the CEO of the fake asset management company and claimed to be the “nephew” of a billionaire Swiss art dealer.
Notably, Luxembourg’s financial regulator had flagged the website of the purported asset management firm for fraudulent activity. However, the regulatory warning came after the people operating the website allegedly scammed the AI startup.
Luxembourg Financial Regulator's (CSSF's) Warning About Tesalia Asset Management
According to Dr Veidlinger, this third scammer continued to promise a USD 5 million investment in the AI startup. He claimed to hold EUR 5 million in cash that he intended to invest via a convertible debt instrument to avoid certain Swiss tax liabilities.
After negotiations over several Zoom calls, the fake investors increased their supposed investment to USD 8 million. The startup CEO even engaged a corporate law firm to draft an investment agreement, which the scammers approved.
A week after receiving the agreement, the scammer posing as the CEO claimed that his CFO had advised him to set aside USD 1.2 million—the total interest on the USD 8 million convertible debt investment—in a cryptocurrency wallet for three months for regulatory compliance. He further stated that this amount would be drawn from his initial investment, presenting this as part of the investment process.
Catch: Fiat Investment to Crypto Wallet Request
The scammers then moved to the “catch” stage, making an unusual request. They asked the startup CEO to create a cryptocurrency wallet and deposit at least USD 400,000 into it to prove the startup’s financial capability, Dr Veidlinger pointed out.
The startup CEO, unable to use company funds, offered to deposit USD 50,000 of his personal funds. At this stage, Dr Veidlinger, an investor in the startup, was asked to assist in setting up the wallet.
Dr Veidlinger initially created a Coinbase wallet, deposited approximately USD 51,000 in USDT, and shared the wallet details with the scammers. However, the scammers claimed the wallet could not be verified on the blockchain and asked for the funds to be transferred to a Trust Wallet address.
Although Dr Veidlinger complied and the funds were verified on Trust Wallet, the scammers then requested the funds be stored on Atomic Wallet. Despite finding this unusual, Dr Veidlinger agreed.
During a subsequent Zoom call, the scammer posing as the CEO introduced another individual, referred to as his nephew, who asked to verify the funds on Atomic Wallet. Although the funds had already been verified on Etherscan, the startup CEO complied.
The scammers then requested a live transaction during the Zoom call, as per Dr Veidlinger. They instructed the startup CEO to send USD 5 in USDT from his wallet to theirs, asking him to manually input the amount and scan a QR code. However, the QR code embedded the transaction amount, overriding the manually entered amount. As a result, the startup CEO inadvertently sent nearly USD 50,000 in USDT.
The scammers exploited a basic vulnerability in Atomic Wallet interface. Although the startup CEO manually entered USD 5, the QR code embedded a higher transfer amount, which appeared as USD 5 on the confirmation screen but sent USD 50,000 in reality.
The startup CEO confronted the scammers, who refused to return the funds and subsequently cut off all communication.
“The day of the theft—August 23, 2024—would have been the last time startup CEO's ever communicated with the scammers,” Dr Veidlinger told Finance Magnates. “They did their best to first deny the theft and then to pressure him (the startup founder) not to public with the details and recordings... When scammers realized they could not dissuade startup's CEO from going public, they broke off all contact.”
Dr Veidlinger confirmed to Finance Magnates that the stolen funds could not be recovered. The funds were moved in small amounts to over a dozen destinations and cashed out on two exchanges: Bitget and Binance. Dr Veidlinger, who managed the crypto wallet, and the startup also filed complaints with the law enforcements in North America and Europe, however, none of them receive any update on the actions. They also reported the interface vulnerability to Atomic Wallet, only to receive a scripted message from the support team.
“Even though the startup has engaged a law firm, it has been advised that probability of funds recovery is practically zero given multiple jurisdictions involved. Never mind the difficulty of bringing litigation against people whose identity and domicile we do not know,” Dr Veidlinger.
Finance Magnates reached out to Atomic Wallet to know about the vulnerability and also Tesalia Asset Management, the platform Dr Veidlinger accused to be operated by the scammers, but did not receive any reply from either.
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
KuCoin Rolls Out MiCA-Regulated Crypto Platform Across 29 EU Markets
Hannah Hill on Innovation, Branding & Award-Winning Technology | Executive Interview | AXI
Hannah Hill on Innovation, Branding & Award-Winning Technology | Executive Interview | AXI
Recorded live at FMLS:25, this executive interview features Hannah Hill, Head of Brand and Sponsorship at AXI, in conversation with Finance Magnates, following AXI’s win for Most Innovative Broker of the Year 2025.
In this wide-ranging discussion, Hannah shares insights on:
🔹What winning the Finance Magnates award means for AXI’s credibility and innovation
🔹How the launch of AXI Select, the capital allocation program, is redefining industry standards
🔹The development and rollout of the AXI trading app across multiple markets
🔹Driving brand evolution alongside technological advancements
🔹Encouraging and recognizing teams behind the scenes
🔹The role of marketing, content, and social media in building product awareness
Hannah explains why standout products, strategic branding, and a focus on innovation are key to growing visibility and staying ahead in a competitive brokerage landscape.
🏆 Award Highlight: Most Innovative Broker of the Year 2025
👉 Subscribe to Finance Magnates for more executive interviews, industry insights, and exclusive coverage from the world’s leading financial events.
#FMLS25 #FinanceMagnates #MostInnovativeBroker #TradingTechnology #FinTech #Brokerage #ExecutiveInterview #AXI
Recorded live at FMLS:25, this executive interview features Hannah Hill, Head of Brand and Sponsorship at AXI, in conversation with Finance Magnates, following AXI’s win for Most Innovative Broker of the Year 2025.
In this wide-ranging discussion, Hannah shares insights on:
🔹What winning the Finance Magnates award means for AXI’s credibility and innovation
🔹How the launch of AXI Select, the capital allocation program, is redefining industry standards
🔹The development and rollout of the AXI trading app across multiple markets
🔹Driving brand evolution alongside technological advancements
🔹Encouraging and recognizing teams behind the scenes
🔹The role of marketing, content, and social media in building product awareness
Hannah explains why standout products, strategic branding, and a focus on innovation are key to growing visibility and staying ahead in a competitive brokerage landscape.
🏆 Award Highlight: Most Innovative Broker of the Year 2025
👉 Subscribe to Finance Magnates for more executive interviews, industry insights, and exclusive coverage from the world’s leading financial events.
#FMLS25 #FinanceMagnates #MostInnovativeBroker #TradingTechnology #FinTech #Brokerage #ExecutiveInterview #AXI
Executive Interview | Dor Eligula | Co-Founder & Chief Business Officer, BridgeWise | FMLS:25
Executive Interview | Dor Eligula | Co-Founder & Chief Business Officer, BridgeWise | FMLS:25
In this session, Jonathan Fine form Ultimate Group speaks with Dor Eligula from Bridgewise, a fast-growing AI-powered research and analytics firm supporting brokers and exchanges worldwide.
We start with Dor’s reaction to the Summit and then move to broker growth and the quick wins brokers often overlook. Dor shares where he sees “blue ocean” growth across Asian markets and how local client behaviour shapes demand.
We also discuss the rollout of AI across investment research. Dor gives real examples of how automation and human judgment meet at Bridgewise — including moments when analysts corrected AI output, and times when AI prevented an error.
We close with a practical question: how retail investors can actually use AI without falling into common traps.
In this session, Jonathan Fine form Ultimate Group speaks with Dor Eligula from Bridgewise, a fast-growing AI-powered research and analytics firm supporting brokers and exchanges worldwide.
We start with Dor’s reaction to the Summit and then move to broker growth and the quick wins brokers often overlook. Dor shares where he sees “blue ocean” growth across Asian markets and how local client behaviour shapes demand.
We also discuss the rollout of AI across investment research. Dor gives real examples of how automation and human judgment meet at Bridgewise — including moments when analysts corrected AI output, and times when AI prevented an error.
We close with a practical question: how retail investors can actually use AI without falling into common traps.
Brendan Callan joined us fresh off the Summit’s most anticipated debate: “Is Prop Trading Good for the Industry?” Brendan argued against the motion — and the audience voted him the winner.
In this interview, Brendan explains the reasoning behind his position. He walks through the message he believes many firms avoid: that the current prop trading model is too dependent on fees, too loose on risk, and too confusing for retail audiences.
We discuss why he thinks the model grew fast, why it may run into walls, and what he believes is needed for a cleaner, more responsible version of prop trading.
This is Brendan at his frankest — sharp, grounded, and very clear about what changes are overdue.
Brendan Callan joined us fresh off the Summit’s most anticipated debate: “Is Prop Trading Good for the Industry?” Brendan argued against the motion — and the audience voted him the winner.
In this interview, Brendan explains the reasoning behind his position. He walks through the message he believes many firms avoid: that the current prop trading model is too dependent on fees, too loose on risk, and too confusing for retail audiences.
We discuss why he thinks the model grew fast, why it may run into walls, and what he believes is needed for a cleaner, more responsible version of prop trading.
This is Brendan at his frankest — sharp, grounded, and very clear about what changes are overdue.
Elina Pedersen on Growth, Stability & Ultra-Low Latency | Executive Interview | Your Bourse
Elina Pedersen on Growth, Stability & Ultra-Low Latency | Executive Interview | Your Bourse
Recorded live at FMLS:25 London, this executive interview features Elina Pedersen, in conversation with Finance Magnates, following her company’s win for Best Connectivity 2025.
🔹In this wide-ranging discussion, Elina shares insights on:
🔹What winning a Finance Magnates award means for credibility and reputation
🔹How broker demand for stability and reliability is driving rapid growth
🔹The launch of a new trade server enabling flexible front-end integrations
🔹Why ultra-low latency must be proven with data, not buzzwords
🔹Common mistakes brokers make when scaling globally
🔹Educating the industry through a newly launched Dealers Academy
🔹Where AI fits into trading infrastructure and where it doesn’t
Elina explains why resilient back-end infrastructure, deep client partnerships, and disciplined focus are critical for brokers looking to scale sustainably in today’s competitive market.
🏆 Award Highlight: Best Connectivity 2025
👉 Subscribe to Finance Magnates for more executive interviews, industry insights, and exclusive coverage from the world’s leading financial events.
#FMLS25 #FinanceMagnates #BestConnectivity #TradingTechnology #UltraLowLatency #FinTech #Brokerage #ExecutiveInterview
Recorded live at FMLS:25 London, this executive interview features Elina Pedersen, in conversation with Finance Magnates, following her company’s win for Best Connectivity 2025.
🔹In this wide-ranging discussion, Elina shares insights on:
🔹What winning a Finance Magnates award means for credibility and reputation
🔹How broker demand for stability and reliability is driving rapid growth
🔹The launch of a new trade server enabling flexible front-end integrations
🔹Why ultra-low latency must be proven with data, not buzzwords
🔹Common mistakes brokers make when scaling globally
🔹Educating the industry through a newly launched Dealers Academy
🔹Where AI fits into trading infrastructure and where it doesn’t
Elina explains why resilient back-end infrastructure, deep client partnerships, and disciplined focus are critical for brokers looking to scale sustainably in today’s competitive market.
🏆 Award Highlight: Best Connectivity 2025
👉 Subscribe to Finance Magnates for more executive interviews, industry insights, and exclusive coverage from the world’s leading financial events.
#FMLS25 #FinanceMagnates #BestConnectivity #TradingTechnology #UltraLowLatency #FinTech #Brokerage #ExecutiveInterview
In this video, we take an in-depth look at @BlueberryMarketsForex , a forex and CFD broker operating since 2016, offering access to multiple trading platforms, over 1,000 instruments, and flexible account types for different trading styles.
We break down Blueberry’s regulatory structure, including its Australian Financial Services License (AFSL), as well as its authorisation and registrations in other jurisdictions. The review also covers supported platforms such as MetaTrader 4, MetaTrader 5, cTrader, TradingView, Blueberry.X, and web-based trading.
You’ll learn about available instruments across forex, commodities, indices, share CFDs, and crypto CFDs, along with leverage options, minimum and maximum trade sizes, and how Blueberry structures its Standard and Raw accounts.
We also explain spreads, commissions, swap rates, swap-free account availability, funding and withdrawal methods, processing times, and what traders can expect from customer support and additional services.
Watch the full review to see whether Blueberry’s trading setup aligns with your experience level, strategy, and risk tolerance.
📣 Stay up to date with the latest in finance and trading. Follow Finance Magnates for industry news, insights, and global event coverage.
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#Blueberry #BlueberryMarkets #BrokerReview #ForexBroker #CFDTrading #OnlineTrading #FinanceMagnates #TradingPlatforms #MarketInsights
In this video, we take an in-depth look at @BlueberryMarketsForex , a forex and CFD broker operating since 2016, offering access to multiple trading platforms, over 1,000 instruments, and flexible account types for different trading styles.
We break down Blueberry’s regulatory structure, including its Australian Financial Services License (AFSL), as well as its authorisation and registrations in other jurisdictions. The review also covers supported platforms such as MetaTrader 4, MetaTrader 5, cTrader, TradingView, Blueberry.X, and web-based trading.
You’ll learn about available instruments across forex, commodities, indices, share CFDs, and crypto CFDs, along with leverage options, minimum and maximum trade sizes, and how Blueberry structures its Standard and Raw accounts.
We also explain spreads, commissions, swap rates, swap-free account availability, funding and withdrawal methods, processing times, and what traders can expect from customer support and additional services.
Watch the full review to see whether Blueberry’s trading setup aligns with your experience level, strategy, and risk tolerance.
📣 Stay up to date with the latest in finance and trading. Follow Finance Magnates for industry news, insights, and global event coverage.
Connect with us:
🔗 LinkedIn: /financemagnates
👍 Facebook: /financemagnates
📸 Instagram: https://www.instagram.com/financemagnates
🐦 X: https://x.com/financemagnates
🎥 TikTok: https://www.tiktok.com/tag/financemagnates
▶️ YouTube: /@financemagnates_official
#Blueberry #BlueberryMarkets #BrokerReview #ForexBroker #CFDTrading #OnlineTrading #FinanceMagnates #TradingPlatforms #MarketInsights
