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Every state-changing event for Blazar Token / John A. DeSalvo: moderation decisions on community submissions, plus corrections and updates from the news pipeline. URL-based decisions are designed to carry three independent witnesses — the original source, an Internet Archive snapshot, and a Solana memo signed by our publicly-disclosed publisher key. Archive coverage is still being backfilled, so each decision below reports its own snapshot status rather than assuming one exists.

1. #1publishby system:backfill

   2026-08-09 23:08:59Z
   Score: ? → ? (no score change)
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   {"actor":"system:backfill","investigation_id":"0a172da3-8249-44fd-a8fa-21542a823994","kind":"publish","page_slug":"blazar-token-john-a-desalvo","published_at":"2026-08-09T23:08:59.684Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Blazar Token / John A. DeSalvo","sections":[{"content":"John A. DeSalvo, approximately 47 years old at the time of charges, was a former lieutenant with the New Jersey Department of Corrections based in Linwood, New Jersey (Cape May County). His career in state law enforcement gave him access to tight-knit professional networks within police, fire, and emergency medical services communities. DeSalvo operated at least two separate fraud schemes: an earlier brokerage investment scheme beginning in January 2021, and the Blazar Token cryptocurrency scheme beginning in November 2021. He promoted both ventures through social media, primarily Facebook groups oriented toward law enforcement professionals.","heading":"Background: John A. DeSalvo","severity":"high","sources":[{"credibility":2,"name":"Philadelphia Inquirer: Blazar Token cryptocurrency scam targeted law enforcement officers","type":"news_article","url":"https://www.inquirer.com/news/new-jersey-corrections-officer-charged-cryptocurrency-scam-fraud-blazar-token-20230828.html"},{"credibility":1,"name":"SEC Press Release 2023-157: SEC Charges Former New Jersey Corrections Officer with Crypto Fraud Scheme","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2023-157"}]},{"content":"DeSalvo created and launched Blazar Token in November 2021, marketing it to police officers, firefighters, EMTs, and other first responders as a 'crypto pension' that would supplement existing state pension plans. He described it as 'the first cryptocurrency that would be purchased through weekly pre-tax payroll deductions, similar to a 401(k) or IRA account.' Before the actual token was developed or received any regulatory approval, DeSalvo sold 'placeholder tokens' to investors. DeSalvo made multiple material misrepresentations to investors: he falsely claimed the token was registered with the SEC; falsely stated that it had been approved for listing on major cryptocurrency exchanges; claimed automatic payroll deduction purchasing had been arranged; and guaranteed returns exceeding 20% with 'ZERO risk.' He also claimed the token would 'continue to rise over time similar to any investment fund, only at a much higher rate of success' and falsely stated it could eventually replace existing state pension systems. In total, DeSalvo raised at least $623,888 from approximately 222 investors.","heading":"The Blazar Token Scheme","severity":"critical","sources":[{"credibility":1,"name":"SEC Press Release 2023-157: SEC Charges Former New Jersey Corrections Officer","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2023-157"},{"credibility":1,"name":"DOJ USAO-NJ: Former New Jersey Corrections Officer Admits Role in Cryptocurrency Fraud Scheme","type":"regulatory","url":"https://www.justice.gov/usao-nj/pr/former-new-jersey-corrections-officer-admits-role-cryptocurrency-fraud-scheme-targeted"},{"credibility":2,"name":"Fox Business: SEC files charges against former New Jersey officer in crypto fraud scheme","type":"news_article","url":"https://www.foxbusiness.com/markets/sec-charges-former-new-jersey-officer-crypto-fraud-scheme-targeting-first-responders"}]},{"content":"After receiving investor funds, DeSalvo diverted the proceeds for personal use rather than developing the Blazar Token as represented. Documented misappropriations included: transfers to his personal cryptocurrency wallets, payment for a personal bathroom renovation, day-trading in volatile cryptocurrencies unrelated to Blazar, personal expenses, and Ponzi-scheme-style payments to earlier investors using later investors' funds. One victim, a federal law enforcement agent, invested approximately $50,000 including children's college funds on the expectation of 20% returns.","heading":"Misappropriation of Investor Funds","severity":"critical","sources":[{"credibility":1,"name":"SEC Press Release 2023-157","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2023-157"},{"credibility":2,"name":"Philadelphia Inquirer: Blazar Token cryptocurrency scam targeted law enforcement officers","type":"news_article","url":"https://www.inquirer.com/news/new-jersey-corrections-officer-charged-cryptocurrency-scam-fraud-blazar-token-20230828.html"},{"credibility":2,"name":"TRM Labs: New Jersey Man Pleads Guilty To Defrauding First Responders in Crypto Scam","type":"research","url":"https://www.trmlabs.com/resources/blog/new-jersey-man-pleads-guilty-to-defrauding-first-responders-in-crypto-scam"}]},{"content":"In May 2022, DeSalvo executed what investigators and reporters characterized as a rug-pull. He sold over 41 billion of his own Blazar tokens on the PancakeSwap decentralized exchange. This mass sell-off caused the price of the token to drop precipitously. The value of Blazar never recovered, and most investors lost their entire investments. The token was listed on Binance Smart Chain (now BNB Chain) infrastructure via PancakeSwap, indicating DeSalvo had deployed a BEP-20 or equivalent token without meaningful exchange partnerships as he had claimed.","heading":"Rug-Pull: Token Collapse in May 2022","severity":"critical","sources":[{"credibility":1,"name":"DOJ USAO-NJ: Former New Jersey Corrections Officer Admits Role in Cryptocurrency Fraud Scheme","type":"regulatory","url":"https://www.justice.gov/usao-nj/pr/former-new-jersey-corrections-officer-admits-role-cryptocurrency-fraud-scheme-targeted"},{"credibility":2,"name":"Philadelphia Inquirer: Blazar Token cryptocurrency scam targeted law enforcement officers","type":"news_article","url":"https://www.inquirer.com/news/new-jersey-corrections-officer-charged-cryptocurrency-scam-fraud-blazar-token-20230828.html"}]},{"content":"Prior to the Blazar Token scheme, DeSalvo operated a separate investment fraud between January and May 2021 under the name 'Brokerage-1 Investment Group.' He solicited approximately $95,000 to $100,000 from roughly 17 to 20 investors, falsely claiming he had been 'averaging close to 1200% over the last two years' in stock, options, and cryptocurrency trading. DeSalvo lost approximately $17,000 through speculative trades, then misappropriated the remaining approximately $78,000 to $83,000 for credit card payments, personal cryptocurrency trading, contractor payments for residential work, and Ponzi-style distributions to earlier investors. He provided investors with fabricated trading records attributing losses to market conditions.","heading":"Earlier Investment Fraud Scheme (Brokerage-1)","severity":"high","sources":[{"credibility":2,"name":"Breaking AC: Ex-corrections officer from Linwood admits to two fraud schemes","type":"news_article","url":"https://breakingac.com/news/2024/mar/26/ex-corrections-officer-from-linwood-admits-to-two-fraud-schemes/"},{"credibility":1,"name":"SEC Press Release 2023-157","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2023-157"}]},{"content":"DeSalvo specifically and deliberately targeted fellow law enforcement personnel, firefighters, and emergency medical technicians — professional communities characterized by mutual trust and solidarity. His marketing leveraged Facebook groups and word-of-mouth referrals within these networks. Regulators and prosecutors noted this as an aggravating factor, as DeSalvo exploited the professional credibility granted to him as a fellow corrections officer. The SEC's press release specifically highlighted that the scheme 'targeted law enforcement personnel,' and the DOJ similarly framed the case as fraud against first responders.","heading":"Targeting of Law Enforcement Community","severity":"high","sources":[{"credibility":1,"name":"SEC Press Release 2023-157: SEC Charges Former New Jersey Corrections Officer with Crypto Fraud Scheme Targeting Law Enforcement Personnel","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2023-157"},{"credibility":2,"name":"Fox Business: SEC files charges against former New Jersey officer in crypto fraud scheme targeting first responders","type":"news_article","url":"https://www.foxbusiness.com/markets/sec-charges-former-new-jersey-officer-crypto-fraud-scheme-targeting-first-responders"}]},{"content":"On August 23, 2023, federal prosecutors in the U.S. Attorney's Office for the District of New Jersey charged DeSalvo with two counts of wire fraud, two counts of securities fraud, and two counts of money laundering. The New Jersey Attorney General's Office filed parallel state charges including second-degree theft by deception and fourth-degree business practices. On March 25, 2024, DeSalvo pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to two counts of securities fraud under a two-count Information. Sentencing was scheduled for August 6, 2024. The maximum statutory penalty for each securities fraud count is 20 years in prison and a $5 million fine. Investigators included the FBI Atlantic City Resident Agency and the New Jersey Division of Criminal Justice.","heading":"Federal Criminal Charges and Guilty Plea","severity":"critical","sources":[{"credibility":1,"name":"DOJ USAO-NJ: Former New Jersey Corrections Officer Admits Role in Cryptocurrency Fraud Scheme","type":"court_filing","url":"https://www.justice.gov/usao-nj/pr/former-new-jersey-corrections-officer-admits-role-cryptocurrency-fraud-scheme-targeted"},{"credibility":1,"name":"DOJ USAO-NJ: Former New Jersey Corrections Officer Charged with Cryptocurrency Fraud Scheme","type":"regulatory","url":"https://www.justice.gov/usao-nj/pr/former-new-jersey-corrections-officer-charged-cryptocurrency-fraud-scheme-targeted-law"},{"credibility":2,"name":"Breaking AC: Ex-corrections officer from Linwood admits to two fraud schemes","type":"news_article","url":"https://breakingac.com/news/2024/mar/26/ex-corrections-officer-from-linwood-admits-to-two-fraud-schemes/"}]},{"content":"The SEC filed a separate civil complaint on August 23, 2023, in the U.S. District Court for the District of New Jersey (SEC v. DeSalvo). The complaint alleged violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. On August 4, 2026, the SEC filed a consent and proposed final judgment with the court resolving the civil action. Under the settlement, DeSalvo consented to: (1) a permanent injunction against violating the Securities Act and Exchange Act provisions cited in the complaint; (2) a permanent conduct-based injunction barring him from participating in the issuance, offer, or sale of any security; and (3) disgorgement liability of $681,105. The disgorgement obligation was to be deemed satisfied by the restitution order entered in the parallel criminal matter, United States v. DeSalvo, No. 24-cr-200-BRM (D.N.J.). No separate civil monetary penalty amount has been reported in available sources.","heading":"SEC Civil Action and August 2026 Settlement","severity":"critical","sources":[{"credibility":1,"name":"SEC Litigation Release lr-25814: John A. DeSalvo","type":"regulatory","url":"https://www.sec.gov/litigation/litreleases/lr-25814"},{"credibility":2,"name":"FX News Group: SEC settles case against former New Jersey corrections officer charged with crypto fraud","type":"news_article","url":"https://fxnewsgroup.com/forex-news/cryptocurrency/sec-settles-case-against-former-new-jersey-corrections-officer-charged-with-crypto-fraud/"}]},{"content":"The Blazar Token was sold as an unregistered security in violation of Sections 5(a) and 5(c) of the Securities Act of 1933, which require registration of securities offerings absent an applicable exemption. No exemption applied. DeSalvo additionally violated the antifraud provisions of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act through material misrepresentations regarding SEC registration status, exchange listings, guaranteed returns, and the intended use of investor proceeds. The earlier Brokerage-1 scheme also involved unregistered securities and fraudulent conduct.","heading":"Regulatory Violations","severity":"critical","sources":[{"credibility":1,"name":"SEC Press Release 2023-157","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2023-157"},{"credibility":1,"name":"SEC Litigation Release lr-25814","type":"regulatory","url":"https://www.sec.gov/litigation/litreleases/lr-25814"}]}],"sources_used":[{"credibility":1,"name":"SEC Press Release 2023-157: SEC Charges Former New Jersey Corrections Officer with Crypto Fraud Scheme Targeting Law Enforcement Personnel","type":"regulatory","url":"https://www.sec.gov/newsroom/press-releases/2023-157"},{"credibility":1,"name":"SEC Litigation Release lr-25814: John A. DeSalvo","type":"regulatory","url":"https://www.sec.gov/litigation/litreleases/lr-25814"},{"credibility":1,"name":"DOJ USAO-NJ: Former New Jersey Corrections Officer Admits Role in Cryptocurrency Fraud Scheme That Targeted Law Enforcement, Fire Personnel, and Other First Responders","type":"regulatory","url":"https://www.justice.gov/usao-nj/pr/former-new-jersey-corrections-officer-admits-role-cryptocurrency-fraud-scheme-targeted"},{"credibility":1,"name":"DOJ USAO-NJ: Former New Jersey Corrections Officer Charged with Cryptocurrency Fraud Scheme","type":"regulatory","url":"https://www.justice.gov/usao-nj/pr/former-new-jersey-corrections-officer-charged-cryptocurrency-fraud-scheme-targeted-law"},{"credibility":2,"name":"Philadelphia Inquirer: Blazar Token cryptocurrency scam targeted law enforcement officers, New Jersey prosecutors say","type":"news_article","url":"https://www.inquirer.com/news/new-jersey-corrections-officer-charged-cryptocurrency-scam-fraud-blazar-token-20230828.html"},{"credibility":2,"name":"Fox Business: SEC files charges against former New Jersey officer in crypto fraud scheme targeting first responders","type":"news_article","url":"https://www.foxbusiness.com/markets/sec-charges-former-new-jersey-officer-crypto-fraud-scheme-targeting-first-responders"},{"credibility":2,"name":"FX News Group: SEC settles case against former New Jersey corrections officer charged with crypto fraud","type":"news_article","url":"https://fxnewsgroup.com/forex-news/cryptocurrency/sec-settles-case-against-former-new-jersey-corrections-officer-charged-with-crypto-fraud/"},{"credibility":2,"name":"Breaking AC: Ex-corrections officer from Linwood admits to two fraud schemes","type":"news_article","url":"https://breakingac.com/news/2024/mar/26/ex-corrections-officer-from-linwood-admits-to-two-fraud-schemes/"},{"credibility":2,"name":"TRM Labs: New Jersey Man Pleads Guilty To Defrauding First Responders in Crypto Scam","type":"research","url":"https://www.trmlabs.com/resources/blog/new-jersey-man-pleads-guilty-to-defrauding-first-responders-in-crypto-scam"},{"credibility":1,"name":"SEC on X (Twitter): Today we charged former NJ State Corrections Officer John A. DeSalvo","type":"social_media","url":"https://x.com/SECGov/status/1694428410552959186"},{"credibility":2,"name":"Blockchain.news: Blazar Token Scam: Former New Jersey Corrections Officer Charged by SEC","type":"news_article","url":"https://blockchain.news/news/blazar-token-scam-former-new-jersey-corrections-officer-charged-by-sec"},{"credibility":2,"name":"NJBIZ: Former corrections officer admits role in 'crypto pension' fraud scheme","type":"news_article","url":"https://njbiz.com/former-corrections-officer-admits-role-in-crypto-pension-fraud-scheme/"}],"summary":"Blazar Token was a fraudulent cryptocurrency created by former New Jersey State Corrections Lieutenant John A. DeSalvo, who marketed it to law enforcement personnel and first responders as a 'crypto pension' supplement beginning in November 2021. DeSalvo raised at least $623,888 from approximately 222 investors through materially false representations, then misappropriated the funds and executed a rug-pull in May 2022 by selling over 41 billion of his own tokens, collapsing the price. He pleaded guilty to federal securities fraud charges in March 2024, and the SEC reached a civil settlement in August 2026 ordering disgorgement of $681,105.","timeline":[{"date":"2021-01-01","event":"DeSalvo begins operating 'Brokerage-1 Investment Group,' raising approximately $95,000-$100,000 from roughly 17-20 investors through false claims of extraordinary trading returns.","source":"DOJ USAO-NJ / Breaking AC","source_url":"https://www.justice.gov/usao-nj/pr/former-new-jersey-corrections-officer-admits-role-cryptocurrency-fraud-scheme-targeted"},{"date":"2021-05-01","event":"Brokerage-1 Investment Group scheme ends; DeSalvo has lost approximately $17,000 through speculation and misappropriated remaining investor funds for personal use.","source":"Breaking AC","source_url":"https://breakingac.com/news/2024/mar/26/ex-corrections-officer-from-linwood-admits-to-two-fraud-schemes/"},{"date":"2021-11-01","event":"DeSalvo launches Blazar Token, marketing it to law enforcement and first responders as a 'crypto pension.' Sells 'placeholder tokens' before the actual token exists.","source":"Philadelphia Inquirer","source_url":"https://www.inquirer.com/news/new-jersey-corrections-officer-charged-cryptocurrency-scam-fraud-blazar-token-20230828.html"},{"date":"2022-05-01","event":"DeSalvo sells over 41 billion of his own Blazar tokens on PancakeSwap, causing the token price to collapse. Most investors lose their entire investment. The token never recovers.","source":"DOJ USAO-NJ","source_url":"https://www.justice.gov/usao-nj/pr/former-new-jersey-corrections-officer-admits-role-cryptocurrency-fraud-scheme-targeted"},{"date":"2023-08-23","event":"SEC files civil complaint against DeSalvo in U.S. District Court for the District of New Jersey, alleging fraudulent unregistered offering of Blazar Token and misappropriation of investor funds. Federal prosecutors simultaneously announce criminal charges: two counts each of wire fraud, securities fraud, and money laundering. SEC Litigation Release No. LR-25814 issued.","source":"SEC Press Release 2023-157 / DOJ USAO-NJ","source_url":"https://www.sec.gov/newsroom/press-releases/2023-157"},{"date":"2024-03-25","event":"DeSalvo pleads guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to two counts of securities fraud under a two-count Information (criminal case No. 24-cr-200-BRM). Sentencing scheduled for August 6, 2024.","source":"DOJ USAO-NJ / Breaking AC","source_url":"https://www.justice.gov/usao-nj/pr/former-new-jersey-corrections-officer-admits-role-cryptocurrency-fraud-scheme-targeted"},{"date":"2024-08-06","event":"Sentencing hearing scheduled before U.S. District Judge Brian R. Martinotti for the criminal securities fraud case. DeSalvo faced a maximum of 20 years in prison per count. Specific sentence imposed has not been publicly reported in available sources.","source":"Multiple news outlets (March 2024 pre-sentencing reporting)","source_url":"https://breakingac.com/news/2024/mar/26/ex-corrections-officer-from-linwood-admits-to-two-fraud-schemes/"},{"date":"2026-08-04","event":"SEC files consent and proposed final judgment in the civil action, settling the case. DeSalvo ordered to disgorge $681,105 (to be satisfied by criminal restitution order) and permanently enjoined from securities offerings and from violating Securities Act Sections 5(a), 5(c), 17(a) and Exchange Act Section 10(b)/Rule 10b-5.","source":"FX News Group / SEC Litigation Release lr-25814","source_url":"https://fxnewsgroup.com/forex-news/cryptocurrency/sec-settles-case-against-former-new-jersey-corrections-officer-charged-with-crypto-fraud/"}]},"v":1}

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