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.
Binance Junior Puts Crypto in Young Hands, but Keeps the Wallet with Mom and Dad
Marketing in 2026 Audiences, Costs, and Smarter AI
Marketing in 2026 Audiences, Costs, and Smarter AI
As brokers eye B2B business and compete with fintechs and crypto exchanges alike, marketers need to act wisely with often limited budgets. AI can offer scalable solutions, but only if used properly.
Join seasoned marketing executives and specialists as they discuss the main challenges they identify in financial services in 2026 and how they address them.
Attendees of this session will walk away with:
- A nuts-and-bolts account of acquisition costs across platforms and geos
- Analysis of today’s multi-layered audience segments and differences in behaviour
- First-hand account of how global brokers balance consistency and local flavour
- Notes from the field about intelligently using AI and automation in marketing
Speakers:
-Yam Yehoshua, Editor-In-Chief at Finance Magnates
-Federico Paderni, Managing Director for Growth Markets in Europe at X
-Jo Benton, Chief Marketing Officer, Consulting | Fractional CMO
-Itai Levitan, Head of Strategy at investingLive
-Roberto Napolitano, CMO at Innovate Finance
-Tony Cross, Director at Monk Communications
#fmls #fmls25 #fmevents #FintechMarketing #AI #DigitalStrategy #Fintech #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
As brokers eye B2B business and compete with fintechs and crypto exchanges alike, marketers need to act wisely with often limited budgets. AI can offer scalable solutions, but only if used properly.
Join seasoned marketing executives and specialists as they discuss the main challenges they identify in financial services in 2026 and how they address them.
Attendees of this session will walk away with:
- A nuts-and-bolts account of acquisition costs across platforms and geos
- Analysis of today’s multi-layered audience segments and differences in behaviour
- First-hand account of how global brokers balance consistency and local flavour
- Notes from the field about intelligently using AI and automation in marketing
Speakers:
-Yam Yehoshua, Editor-In-Chief at Finance Magnates
-Federico Paderni, Managing Director for Growth Markets in Europe at X
-Jo Benton, Chief Marketing Officer, Consulting | Fractional CMO
-Itai Levitan, Head of Strategy at investingLive
-Roberto Napolitano, CMO at Innovate Finance
-Tony Cross, Director at Monk Communications
#fmls #fmls25 #fmevents #FintechMarketing #AI #DigitalStrategy #Fintech #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
Much like their traders in the market, brokers must diversify to manage risk and stay resilient. But that can get costly, clunky, and lengthy.
This candid panel brings together builders across the trading infrastructure space to uncover the shifting dynamics behind tools, interfaces, and full-stack ambitions.
Attendees will hear:
-Why platform dependency has become one of the most overlooked risks in the trading business?
-Buy vs. build: What do hybrid models look like, and why are industry graveyards filled with failed ‘killer apps’?
-How AI is already changing execution, risk, and reporting—and what’s next?
-Which features, assets, and tools gain the most traction, and where brokers should look for tech-driven retention?
Speakers:
-Stephen Miles, Chief Revenue Officer at FYNXT
-John Morris, Co-Founder at FXBlue
-Matthew Smith, Group Chair & CEO at EC Markets
-Tom Higgins, Founder & CEO at Gold-i
-Gil Ben Hur, Founder at 5% Group
#fmls #fmls25 #fmevents #Brokers #Trading #Fintech #FintechInnovation #TradingTechnology #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
Much like their traders in the market, brokers must diversify to manage risk and stay resilient. But that can get costly, clunky, and lengthy.
This candid panel brings together builders across the trading infrastructure space to uncover the shifting dynamics behind tools, interfaces, and full-stack ambitions.
Attendees will hear:
-Why platform dependency has become one of the most overlooked risks in the trading business?
-Buy vs. build: What do hybrid models look like, and why are industry graveyards filled with failed ‘killer apps’?
-How AI is already changing execution, risk, and reporting—and what’s next?
-Which features, assets, and tools gain the most traction, and where brokers should look for tech-driven retention?
Speakers:
-Stephen Miles, Chief Revenue Officer at FYNXT
-John Morris, Co-Founder at FXBlue
-Matthew Smith, Group Chair & CEO at EC Markets
-Tom Higgins, Founder & CEO at Gold-i
-Gil Ben Hur, Founder at 5% Group
#fmls #fmls25 #fmevents #Brokers #Trading #Fintech #FintechInnovation #TradingTechnology #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
Educators, IBs, And Other Regional Growth Drivers
Educators, IBs, And Other Regional Growth Drivers
When acquisition costs rise and AI generated reviews are exactly as useful as they sound, performing and fair partners can make or break brokers.
This session looks at how these players are shaping access, trust and user engagement, and what the most effective partnership models look like in 2025.
Key Themes:
- Building trader communities through education and local expertise
- Aligning broker incentives with long-term regional strategies
- Regional regulation and the realities of compliant acquisition
- What’s next for performance-driven partnerships in online trading
Speakers:
-Adam Button, Chief Currency Analyst at investingLive
-Zander Van Der Merwe, Key Individual & Head of Sales at TD Markets
-Brunno Huertas, Regional Manager – Latin America at Tickmill
-Paul Chalmers, CEO at UK Trading Academy
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #BrokerGrowth #FintechPartnerships #RegionalMarkets
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
When acquisition costs rise and AI generated reviews are exactly as useful as they sound, performing and fair partners can make or break brokers.
This session looks at how these players are shaping access, trust and user engagement, and what the most effective partnership models look like in 2025.
Key Themes:
- Building trader communities through education and local expertise
- Aligning broker incentives with long-term regional strategies
- Regional regulation and the realities of compliant acquisition
- What’s next for performance-driven partnerships in online trading
Speakers:
-Adam Button, Chief Currency Analyst at investingLive
-Zander Van Der Merwe, Key Individual & Head of Sales at TD Markets
-Brunno Huertas, Regional Manager – Latin America at Tickmill
-Paul Chalmers, CEO at UK Trading Academy
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #BrokerGrowth #FintechPartnerships #RegionalMarkets
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
The Leap to Everything App: Are Brokers There Yet?
The Leap to Everything App: Are Brokers There Yet?
As the arms race to bundle investing, personal finance, and wallets under super apps grows fiercer, brokers are caught between a rock and a hard place.
This session explores unexpected ways for industry players to collaborate as consumer habits evolve, competitors eye the traffic, and regulation becomes more nuanced.
Speakers:
-Laura McCracken,CEO | Advisory Board Member at Blackheath Advisors | The Payments Association
-Slobodan Manojlović,Vice President | Lead Software Engineer at JP Morgan Chase & Co.
-Jordan Sinclair, President at Robinhood UK
-Simon Pelletier, Head of Product at Yuh
Gerald Perez, CEO at Interactive Brokers UK
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
As the arms race to bundle investing, personal finance, and wallets under super apps grows fiercer, brokers are caught between a rock and a hard place.
This session explores unexpected ways for industry players to collaborate as consumer habits evolve, competitors eye the traffic, and regulation becomes more nuanced.
Speakers:
-Laura McCracken,CEO | Advisory Board Member at Blackheath Advisors | The Payments Association
-Slobodan Manojlović,Vice President | Lead Software Engineer at JP Morgan Chase & Co.
-Jordan Sinclair, President at Robinhood UK
-Simon Pelletier, Head of Product at Yuh
Gerald Perez, CEO at Interactive Brokers UK
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
Mind The Gap: Can Retail Investors Save the UK Stock Market?
Mind The Gap: Can Retail Investors Save the UK Stock Market?
As the dire state of listing and investment in the UK goes from a financial services problem to a national challenge, the retail investing industry is taken to task.
Join a host of executives and experts for a candid conversation about the future of millions of Brits, as seen from a financial services standpoint:
-Are they happy with the Leeds Reform, in principle and in practice?
-Is it the government’s job to affect the ‘saver’ mentality? Is it doing well?
-What can brokers and fintechs do to spur UK investment?
-How can the FCA balance greater flexibility with consumer protection?
Speakers:
-Adam Button, Chief Currency Analyst at investingLive
-Nicola Higgs, Partner at Latham & Watkins
-Dan Lane, Investment Content Lead at Robinhood UK
-Jack Crone, PR & Public Affairs Lead at IG
-David Belle, Founder at Fink Money
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #RetailInvesting #UKFinance
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
As the dire state of listing and investment in the UK goes from a financial services problem to a national challenge, the retail investing industry is taken to task.
Join a host of executives and experts for a candid conversation about the future of millions of Brits, as seen from a financial services standpoint:
-Are they happy with the Leeds Reform, in principle and in practice?
-Is it the government’s job to affect the ‘saver’ mentality? Is it doing well?
-What can brokers and fintechs do to spur UK investment?
-How can the FCA balance greater flexibility with consumer protection?
Speakers:
-Adam Button, Chief Currency Analyst at investingLive
-Nicola Higgs, Partner at Latham & Watkins
-Dan Lane, Investment Content Lead at Robinhood UK
-Jack Crone, PR & Public Affairs Lead at IG
-David Belle, Founder at Fink Money
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #RetailInvesting #UKFinance
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
