Arcadia Councilman John Wuo Resigns over Digital Currency Pyramid Scheme
Gemcoin was supposed to be the next “breakthrough in finance.”
Now, John Wuo is asking the company behind the digital currency to remove him from their promotional materials. Wuo appeared in YouTube videos hyping the currency as well as appearing before media dropping phrases about the currency being “cutting edge.”
Gemcoin, unlike bitcoin, is under quite a bit of regulatory fire. The Securities and Exchange Commission filed suit last month, calling U.S. Fine Investment Art, the company behind Gemcoin, a pyramid scheme. The FBI and state Department of Business Oversight are also investigating USFIA.
Wuo’s letter of resignation was read by Arcadia Mayor Gary Kovacic at a recent city council meeting, Wuo did not attend. Wuo faced public ire before Gemcoin too, with one group opposed to his stance on the mansionization of Arcadia having begun preparations for a recall.
One disgruntled Gemcoin investor has also filed a lawsuit that could soon gain class-action status. The lawsuit alleges fraud and negligent misrepresentation.
Wuo has since tried to disassociate himself from those at Gemcoin, saying “I haven't done anything. I don't have any association with them."
Finer grain details on the councilman’s involvement with a potential pyramid scheme can be found here.