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 loosing about $50,000 only to realise 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 $5 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…
