Former MLB players and their families were defrauded out of millions from a cryptocurrency Ponzi scheme, according to a complaint filed in Arizona federal court last week.
Business partners John Michael Caruso and Zachary Salter were arrested by the U.S. Secret Service on charges of running a phony cryptocurrency investment firm, committing wire fraud and laundering money in a scheme that stole from over 100 people.
According to investigators, Caruso and Salter stole at least $7.5 million from their marks, which included “former MLB players and their families,” per the filing.
Caruso, who also uses the self-appointed moniker “Kryp+0 K!ng,” and Salter, an aspiring R&B singer, founded Zima Digital Assets in 2018. The so-called firm’s website claims Zima “operates various private funds focusing on investments in cutting-edge technologies, including crypto and other blockchain based assets.”
Prosecutors assert that the descriptor is entirely and deliberately false.
“Based on all financial records received to date there is no evidence any of the investment funds that have been provided to Caruso and Salter have gone to any digital asset investment, or to any investment of any kind,” read the filing.
In emails obtained by investigators, Caruso guaranteed their “investors” returns of up to 30% and received investments as large as $300,000.
In 2019, Caruso was a scheduled speaker for “Campfire Summit Athletes & Families,” a Scottsdale retreat its website describes as “a private mastermind gathering the worlds [sic] change makers.” Last year’s event was held at Caruso’s mansion rental in nearby Paradise Valley. Fifteen MLB teams hold their spring camps near the retreat location, including the Dodgers, Indians and Cubs. At the time of publish, Campfire Summit had not responded to a request for comment.
Though players’ names were mentioned in the filing, the “Success at Success” podcast featured on Campfire Summit’s website touts retired White Sox slugger Paul Konerko, current Reds pitcher Trevor Bauer and Dolphins quarterback Josh Rosen as high-profile guests.
Investigators argue that any investment made into Zima financed the founders’ lavish lifestyles, including luxury vehicles and gambling sprees documented on their Instagram accounts.
Salter’s 2019 single, “Zaddy,” was released on Zima Records. The music is as almost as good as the investment.
