Crypto Anyone who comes into contact with Andrew R. Katz (also known as Ross Katz and Stark Katz), who presents himself as the founder of “Seaquake.io,” or his purported company, should be sufficiently alarmed by the fact that he utilizes a variety of aliases and different corporate companies that are registered in multiple states. This alone should be enough to raise red lights.
About three years ago, a friend of mine started working for a start-up’ as a business development executive, and he approached me about making an investment in the company. After signing something that was referred to as a “SAFE Note,” I sent ten thousand dollars to a corporate account that was named “Seaquake.” After a few months had passed, I came to the realization that legal action had been taken against Seaquake and its leaders, Andrew R. Katz and Matthew Krueger, on the grounds that they had fraudulently taken money from other investors.
Then I found a number of ‘complaints’ that had been placed on the internet by landlords and Airbnb hosts who claimed that Andrew R. Katz had stiffed them and that when they demanded their money, he began sending them harassing and threatening text messages.
Introduction
In recent years, cryptocurrency has emerged as a global phenomenon that is sweeping the globe. Investors from all around the world have been drawn to the cryptocurrency market by the allure of large potential returns and the promise of decentralized financial systems. Regrettably, this has also provided a window of opportunity for con artists to take advantage of naive investors by capitalizing on the enthusiasm that has been generated.
Andrew R. Katz is one example of this type of person who presents himself as a cryptocurrency entrepreneur but is, in fact, a con artist. In this piece, we will go into the specifics of the alleged fraudulent acts that Andrew R. Katz engaged in, as well as the process by which he was apprehended and brought to court.
Katz and Krueger
I contacted Krueger to seek the return of my money, and he responded by sending me an email (with a copy to Matthew Krueger) claiming that I “never invested in the company, as no funds were ever received.” I wanted my money back, so I contacted Krueger. I responded by sending proof that confirmed the funds had been sent to the bank account specified by Andrew R. Katz in the first wire instructions.
The documentation was provided by my bank. Katz then responded by asserting that the account information provided (by his employee) was incorrect, and he reiterated his allegation that his company had never been paid the amounts in question. After this, the financial institution that Seaquake had an account with was called by my bank, and they confirmed to them that my monies had been deposited into the Seaquake account.
When I emailed all of that information to Krueger, they claimed they had no record of ever receiving the money and that they would take no further action.
Since then, I’ve learned that Andrew Katz has a criminal record that extends back more than ten years. I was surprised to learn this about him. He is facing charges of assault, stalking, breaking, and weapons possession following his arrest. According to the records that are available to the public, there is a fugitive warrant for his arrest because he failed to appear in court in New York to be sentenced for counts of assault. In April of 2021, he was taken into custody for the final time on several accusations in Miami, Florida.
Andrew R. Katz’s Alleged Fraudulent Activities
In 2021, numerous investors reported to Katz that they had suffered considerable financial losses as a result of their investments in his crypto trading bots. This revelation brought Katz’s fraudulent practices to light. Katz had stated that his bots were capable of generating big returns on investment, but in truth, they were nothing more than scams designed to take money from investors.
It was stated by investors that Andrew R. Katz had guaranteed them returns of up to 300% on their investments, but he had failed to deliver on his promise. After participating in Katz’s schemes, several investors claimed they were unable to retrieve the money they had saved throughout their lives.
It should be noted that Katz’s illegal activities did not stop with his trading bots. In addition to this, it was suggested that he was operating a Ponzi scheme, in which he would take money from new investors to pay off the previous ones. This strategy is unlawful, but con artists frequently use it to make it seem as though their investments are legitimate so that they can steal money from unsuspecting investors.
Katz is also accused of using phony social media accounts to create the idea that he had a significant following and was highly respected in the cryptocurrency industry. This was allegedly done in order to steal money from investors. Quite frequently, he would make use of these fictitious accounts in order to publicize his schemes and solicit new investors.
How Andrew R. Katz Was Caught
Law enforcement agencies did their due diligence and in the end, discovered Katz’s fraudulent conduct. After launching an inquiry into his operations in 2021, the Securities and Exchange Commission (SEC) discovered evidence that he had been running a Ponzi scheme and had been fooling investors for years. The SEC concluded that he should be held accountable for his actions.
Andrew R. Katz was taken into custody and charged with many counts of securities fraud, wire fraud, and money laundering in the month of December 2021. It was alleged that he had defrauded investors out of more than 5 million dollars.
The trial of Andrew R. Katz started early in 2022, and he was found guilty of all charges after the trial was finished. He was forced to make reparations to his victims in addition to receiving a term of 25 years in jail for his crimes.
Lessons Learned
The story of Andrew R. Katz serves as a cautionary tale about the perils of putting money into the cryptocurrency market. Although cryptocurrencies have the potential to provide big returns, they also attract con artists who are attempting to take advantage of investors who are not paying close enough attention.
The phrase “high returns with little risk” should always raise red flags for potential investors because it describes a type of investment that should never be trusted. Before putting their money into any investment opportunity, they need to do their homework and look into the people who are behind it.
In addition, investors should exercise caution when interacting with social media accounts that advertise investment opportunities. There are a lot of people out there who commit fraud and utilize phony accounts to give the impression that they are legitimate and attract new investors.
