SEC, DOJ file charges against creator of little-known Blazar Token

Aug. 23, 2023

By Mike Dalton

An ex-police officer ran a crypto scheme that promised to replace state pensions.

The U.S. Securities and Exchange Commission (SEC) filed charges against John DeSalvo, the creator of a minor cryptocurrency called Blazar Token, on Aug. 23.

The agency said that DeSalvo created Blazar Token in 2021 and raised $620,000 from 220 investors before the token ultimately collapsed in May 2022.

DeSalvo once worked as a State Correctional Police Officer in New Jersey, a fact that was key to his scheme. He allegedly touted Blazar Token as a replacement for existing state pension systems and said his token could be purchased through automatic payroll deductions. He targeted law enforcement and first responders as potential buyers and gained their trust through his status as a former corrections officer.

The SEC also alleged that DeSalvo guaranteed extraordinary returns on investments and falsely claimed that the Blazar Token was properly registered.

The scheme ultimately saw DeSalvo misappropriate and misuse investor funds. The SEC said that DeSalvo sent misappropriated funds to his own cryptocurrency wallet and also used the funds to pay for a bathroom renovation.

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