Consumer complaint received 2022-12-06
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Money was not available when promised — 
Company: CONST LLC (OR)

This Complaint is to report pre-meditated criminal and financial embezzlement, theft and fraud by XXXX  ( Legal Name : CONST LLC, California XXXX File Number : XXXX, https : XXXX ), XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  ) and XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX has its headquarters at XXXX XXXX XXXX XXXX XXXX XXXX XXXX  and shares its location with XXXX XXXX XXXX Both XXXX and XXXXXXXX are owned by XXXX XXXX, with the XXXX XXXX XXXX for them both per California XXXX of XXXX XXXX is at : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  ( Presumably XXXX XXXX home address ) These persons and entities, have defrauded investors of over 13 million US Dollars by running a scheme soliciting investor and consumer money for purely secured lending purposes, loans that were supposed to be fully overcollateralized anywhere between XXXX % of the XXXX loan amount. These representations were overwhelmingly false : XXXX. ) The fact is that less than 1 % of the loans were overcollateralized peer-to-peer loans XXXX. ) XXXX XXXX XXXX XXXX owned company ) made unsecured loans to XXXX XXXX other venture XXXX XXXX to the tune of over 4 million US Dollars. This kind of lending isnt even a part of the current advertised secured product lending portfolio and they have unlawfully diverted customer funds for unauthorized activities. 
XXXX. ) XXXX  and affiliated persons instead embezzled and gambled customer/investor funds while buying cryptocurrencies using customer funds as if it were their own personal property without any regard to the fact that these funds were supposed to be lent to borrowers who should have deposited excess crypto collateral in exchange for loans. 
XXXX. ) XXXX kept falsely representing to the lenders that their loans were matched to the borrowers while their website says that they only offer overcollateralized peer-to-peer loans. The fact was that there were hardly any borrowers, and XXXX stole customer funds for their own investment purposes, instead of using it for advertised secured lending purposes. 
XXXX. ) On XX/XX/2022, XXXX stopped all withdrawals and deposits citing turbulent market conditions. Immediately thereafter, they began deleting all their articles and blogs showing how investor money was secure and safe with XXXX and XXXX XXXX. 
XXXX. ) On XX/XX/2022, XXXX revealed that they had suffered a loss of {$7.00} XXXX due to their investment in XXXX through XXXX XXXX way back in XX/XX/, something that the secured customer lenders in peer-to-peer loans never intended to invest in. XXXX had willfully tried to hide this by proactively reaching out to media and putting out false statements as to how they had very conservative lending requirements and how their business was stable despite crypto-market turbulence. 
XXXX. ) Since XXXX XXXX XXXX kept raising their lending rates repeatedly to 8 % from 7 % in XX/XX/ and again to 9 % in XX/XX/ while repeatedly inducing customers to deposit even more money on the platform, and allowing them to renew their existing deposits. 
XXXX. ) XXXX expressly mentioned on their website that all XXXX currency ( XXXX Dollars ) and Cryptocurrency would be forwarded to XXXX XXXX  for safekeeping and that XXXX XXXX guarantees their safety. None of this was true. Even the statements from the interview by XXXX XXXX, former CEO of XXXX XXXX ( XXXX custodian ) appears to be completely false. 
XXXX. ) XXXX expressly writes on their website that the peer-to-peer secured loan is between a borrower and a lender on their platform. Instead, this is a case where the platform itself embezzled lenders funds for their own unadvertised activities. 
XXXX. ) XXXX, acting with XXXX XXXX, appears to have either lost or hidden a lot of customer assets, and have been playing a Ponzi scheme by soliciting more deposits while promising higher rates, for several months/years by soliciting even more customer funds to mislead and cheat investors. 
This is a serious criminal case ( and a civil case at worst ) which involves intentional and pre-meditated embezzlement, theft, fraud and fraudulent inducement involving unsuspecting, innocent investor/consumer money. 
These entities and persons have criminally defrauded me of over {$2300.00} to date. We have repeatedly tried to make contact with XXXX XXXX ( XXXX custodian that is supposed to administer our accounts and hold our money safely in trust ) and XXXX, and have only received completely unsatisfactory, vague responses. 
XXXX is now offering to refund people who invested in fully secured loans only a fraction of their balances, as a result of their own criminal wrongdoing. 
Considering the gravity of the situation, and the life savings of consumers and investors involved, we fervently urge swift, strict and stringent action to the highest degree possible. Please help. 
Thank you, XXXX XXXX