Artist Accused of Running Financial Pyramid Scheme, Investors Demand Refunds
Date: 2023-10-07 Author: Dima Zakharov Categories: IN WORLD
Sergey Galanter, known for his digital artistry, is at the center of a financial scandal as he stands accused of orchestrating a fraudulent pyramid scheme that duped investors out of a staggering $6 million. Galanter, who initially positioned himself as a collector, investor, and creator of digital artwork, encouraged individuals to invest in the world of digital art.
Galanter promised investors a monthly return of 20% or 40% in just two weeks on blockchain-based virtual projects involving cryptocurrencies. His business operations were exclusively online, with funds being transferred directly to his account. More than 200 people invested in Galanter's project, collectively pouring approximately $6 million into it.
One interesting twist in this story is that Galanter was virtually unknown until his wife, the blogger Maria Afonina, began promoting his venture, ultimately catapulting him to fame.
Together, they marketed their fund as a lucrative opportunity that would yield substantial profits for investors. However, no formal documentation or contracts were provided to investors. In return, Galanter showcased a lavish lifestyle, flaunting expensive cars and luxury apartments in the capital city's elite neighborhoods.
Initially, Galanter did pay out returns to investors, but it was later revealed that these payments were not generated from investment profits but rather from contributions made by new participants. By the summer, these payouts virtually ceased, according to reports from affected individuals.
Investors are now demanding a full refund from the artist, alleging that he swindled them out of their hard-earned money. In his defense, Galanter claims that he did not engage in any deception and insists that the fund is currently facing financial difficulties, resulting in a cash flow crisis.
Galanter has assured investors that payments will resume, though the timelines for these payments have been pushed back. However, many investors remain skeptical of his promises. Attorney D. Yurieva has revealed that the police are now investigating the case, with a decision pending on whether to initiate a criminal case against the artist or first file a collective civil lawsuit. The resolution of this matter is expected in the near future.
Galanter promised investors a monthly return of 20% or 40% in just two weeks on blockchain-based virtual projects involving cryptocurrencies. His business operations were exclusively online, with funds being transferred directly to his account. More than 200 people invested in Galanter's project, collectively pouring approximately $6 million into it.
One interesting twist in this story is that Galanter was virtually unknown until his wife, the blogger Maria Afonina, began promoting his venture, ultimately catapulting him to fame.
Together, they marketed their fund as a lucrative opportunity that would yield substantial profits for investors. However, no formal documentation or contracts were provided to investors. In return, Galanter showcased a lavish lifestyle, flaunting expensive cars and luxury apartments in the capital city's elite neighborhoods.
Initially, Galanter did pay out returns to investors, but it was later revealed that these payments were not generated from investment profits but rather from contributions made by new participants. By the summer, these payouts virtually ceased, according to reports from affected individuals.
Investors are now demanding a full refund from the artist, alleging that he swindled them out of their hard-earned money. In his defense, Galanter claims that he did not engage in any deception and insists that the fund is currently facing financial difficulties, resulting in a cash flow crisis.
Galanter has assured investors that payments will resume, though the timelines for these payments have been pushed back. However, many investors remain skeptical of his promises. Attorney D. Yurieva has revealed that the police are now investigating the case, with a decision pending on whether to initiate a criminal case against the artist or first file a collective civil lawsuit. The resolution of this matter is expected in the near future.
