Red Card Scandal: Trial Begins for 20 Defendants in €28 Million Scam

A French conference center will host a high-profile trial where over 20 defendants face charges for allegedly defrauding more than 1,300 individuals out of €28 million (approximately $30.52 USD). The schemes in the so-called Red Card Scandal included fake cryptocurrency investments and deceptive diamond savings plans.

The defendants, who have reportedly been scamming people for more than two decades, are accused of orchestrating a wide-reaching international financial fraud. Among the victims are football clubs, which led to the case getting its name. The magnitude and complexity of the investment schemes have drawn global attention.

The trial’s move to a conference center was said to be necessary due to an overwhelming number of plaintiffs and witnesses. According to Colman, the law firm representing around 100 plaintiffs, some investors lost big chunks of their savings. They even contracted loans to invest in these schemes, drawn by promises of large annual returns.

The defendants’ strategy was multifaceted, with investigators revealing that they opened over 199 bank accounts across 19 countries to receive and transfer funds. Moreover, a side business for the accused involved swindling money out of French football clubs. Some who were based in Marseille and Israel posed as agents acting on behalf of professional players. This caused several top clubs to fall victim to the scam and hand over around €60,000.

Criminal Conspiracy in Fraud as France Leads in DeFi Growth

Twelve defendants are said to be charged with “criminal conspiracy,” mainly for allowing their names to be used in opening bank accounts that facilitated funds transfers. Others face charges of “fraud committed in a gang,” including those accused of creating fake websites or ordering counterfeit diamonds.

Colman’s firm said it is confident about the trial’s outcome, asserting that this will mark “a strong signal in the fight against international financial fraud.” A significant portion of the recovered funds, €2.8 million, is expected to be used to compensate victims for their losses.

As per a recent report by Chainalysis, France is a frontrunner in terms of the growth of decentralized finance (DeFi) transaction volumes. Notable spikes observed in November 2022 and May 2023 were largely influenced by market volatility linked to events such as the FTX collapse and the drop in value of Silicon Valley Bank and USDC, rather than by regulatory changes in Europe. Nevertheless, France’s growth during these times outpaced that of other countries, highlighting its robust presence in the DeFi sector.

Percent change in values sent to DeFI protocols by top six CNWE countries

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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