Sheridan resident loses thousands in cryptocurrency scam

The resident had been contacted by a person over the summer who represented herself as a cryptocurrency broker. According to court documents, the caller was posing as “Sophia” and convinced the individual to wire money as an investment in cryptocurrency.

Cryptocurrency is a digital currency that operates without a central authority, unlike funds in a traditional bank. Cryptocurrencies are stored in a digital ledger or blockchain to secure transactions.

On July 18, the victim wired $100,000 from his account to an account named “Zap Solutions” at Cross Creek Bank in New Jersey.

He was told the money would be invested in the EDX cryptocurrency market — a digital asset marketplace that allows institutional investors to trade cryptocurrencies and other digital assets.

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The victim was then told that his investment had done well and he now had more than $700,000 in his account. However, he was told he would need to pay a “blockchain fee” to make any withdrawals from his account. The fee was $50,075.

On Sept. 19, he wired another $50,075 to the “Zap Solutions” account for the fee. 

Unfortunately, he was never able to access any of the money. 

He contacted EDX Market directly and was told he did not have an account there. What he described to EDX Market representatives was a scam and not how the exchange firm operates. According to the EDX Markets’ website, EDX does not hold clients’ digital assets.

The victim was contacted again and told he would need to pay another blockchain fee, according to court documents. He informed the caller he would not be able to wire any more money. 

The alleged EDX employee agreed to come pick up the cash for the fee in person.

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The victim was told that “Tiffany” would be coming to his residence on Nov. 14 between 2 and 2:30 p.m. to pick up the cash. In coordination with the victim, law enforcement set up surveillance of the victim’s home and observed a woman driving an apparent rental car who parked near the residence and went inside. Law enforcement followed her in. 

Her name was not Tiffany but Jiahui Chen, who had a California driver’s license.

Chen was arrested for conspiracy to commit felony theft. Law enforcement found three bank cards in her purse that all had different names on them.

Conspiracy to commit theft as charged in this case is a felony punishable by imprisonment for not more than 10 years, a fine of not more than $10,000 or both. 

Consumers reported losing more than $10 billion to fraud in 2023, according to the Federal Trade Commission.