TechFlow news, on October 23, according to Protos, the city of Nancy, France has officially begun hearing the "Carton Rouge" fraud case. The case involves more than 1,000 victims, including top French football clubs, which collectively lost 28 million euros (approximately $30 million) through fake cryptocurrency and diamond investment schemes. The criminals created around 30 websites to deceive victims into believing their investments in diamonds and cryptocurrencies would yield guaranteed returns of 6% to 8%. The collected funds were then transferred to nearly 200 bank accounts controlled by the scammers worldwide and laundered to erase traces.
Twenty-two defendants appeared in court for the opening statements. Due to insufficient space in a regular courtroom, the trial was held at a convention center to accommodate representatives from 850 victims. One victim reportedly lost up to 400,000 euros (about $433,000) in the so-called "diamond savings plan." Some victims even received counterfeit diamonds worth only a fraction of their invested amounts. The scammers defrauded 60,000 euros (around $65,000) from football clubs such as Sochaux, Angers, and Toulouse. Six other clubs—Marseille, Nantes, Lorient, Dijon, Brest, and Rennes—successfully avoided falling victim. Sponsors of these football clubs were also targeted by the fraudsters.
To date, authorities have successfully seized 2.8 million euros (approximately $3 million) that can be used to compensate victims. Six additional defendants have pleaded guilty, while three remain at large, with international arrest warrants issued.
