Warning Regarding Ryan Sciolla's Involvement in Financial Fraud and Threats
To Whom It May Concern,
This letter is to inform you about the activities of an individual named Ryan John Sciolla (NMLS ID#: 1036096, State License #: GA #37669, MA #MLO1036096), who has been involved in financial crimes, issuing threats of violence, and other illegal activities. Mr. Sciolla has recently engaged in the promotion and sale of an unregistered security in the form of a cryptocurrency token called "Fuck Community Takeovers, We Ain't Rugging" (FCTWAR) under the pseudonym "Denzel Washington". Through this token, Mr. Sciolla defrauded investors by making the following claims:
- That their investment would increase in value, thereby ensuring a financial gain.
- The first claim meets the criteria of the Howey test for unregistered securities, details of which are available online
The second claim requires a detailed explanation for those unfamiliar with cryptocurrencies. Cryptocurrencies, like publicly traded stocks, have a fixed number of tokens available for trading. Two common scams in this space are the "pump-and-dump" and the "rug pull." A pump-and-dump involves artificially inflating the token's value to attract investors, followed by selling a large supply to profit from the inflated price. A rug pull occurs when the creator of the cryptocurrency holds a majority of the tokens and sells them all at once, thereby drastically reducing the token's value and causing significant financial loss to other investors.
Mr. Sciolla's token was specifically named to reassure investors that it would not be subject to a rug pull or require a community takeover. A community takeover is when investors attempt to save a token following a rug pull. Further, he consistently, through text and voice messaging, promised the community of investors that he would never sell his majority supply of tokens or rug pull them. Despite these assurances, on June 20, 2024, Mr. Sciolla sold 566,966,572 of his tokens, constituting approximately 56% of the total available supply, effectively conducting a rug pull.
Prior to this event, the value of Mr. Sciolla's token had been steadily declining. The rug pull allowed Mr. Sciolla to misappropriate $12,265.55 USD from investors. All cryptocurrency transactions are recorded on a public ledger, and this specific transaction can be viewed at the following link: Ryan's Rug Pull Transaction.
Further investigation reveals that Mr. Sciolla has been using multiple wallets to initiate sell-off transactions throughout the lifespan of his cryptocurrency. Concurrently, he has been pressuring investors not to sell their tokens, claiming that such actions would lead to the token's failure.
When confronted with issues surrounding his leadership of the token, Mr. Sciolla responded with a threat of violence, stating, "I'd knock you the fuck out if I saw u in person." [sic].
All records of these interactions, including Mr. Sciolla's messages and representations of the token as well as an illegal gambling operation, have been archived, will be provided to the proper authorities, and are available per request.
Mr. Sciolla's actions constitute a deliberate misrepresentation with the intent to defraud investors and enrich himself. Despite multiple opportunities provided by the community to rectify the situation, Mr. Sciolla deflected blame and attributed his actions to other illegal operations he was conducting, including an unregistered gambling operation he was devleoping to be operated under the FCTWAR brand.
A criminal referral regarding Mr. Sciolla's activities is currently being prepared.
Further information regarding Mr. Sciolla's activities can be found publicly at the following:
https://dexscreener.com/solana/9v5budeqqt4cn5keydhhkhlwxq8k2m2rrbthsutrkutc
https://x.com/fctwarofficial?t=TlXc3JM_pi0suyaQ0fv0bA&s=08
https://t.me/fctwarofficial
There is more to come. This only the beginning.