Georgia authorities looking for alleged fake coin launch victims
BAKER COUNTY, Ga. - The Baker County Sheriff’s Office in South Georgia is investigating an alleged cryptocurrency scheme centered around XUSD that has reportedly defrauded victims in Georgia, across the United States, and possibly abroad.
What we know:
According to investigators, the scheme involved individuals being lured into buying XUSD coins with the promise that the coin would launch imminently and investors would double their money. But despite months and eventually years of reassurances, the coin never went live. Throughout this time, victims were pressured to invest more money or convert to other versions of the coin, each also touted as being on the verge of launching.
Earlier this month, a key figure tied to the operation was arrested in Bay County, Florida, following a three-week investigation by the Bay County Sheriff’s Office.
Richard Bailey, 55, was found hiding at a residence with three juveniles and a woman identified as Brittany Addis, 36. Bailey, a registered sex offender, was wanted in Georgia on 88 counts of fraud and three counts of racketeering. Authorities say the charges stem from a scheme involving millions of dollars in losses.
Richard Bailey. Photo courtesy of Bay County Sheriff's Office
At the time of Bailey’s arrest, the Baker County District Attorney’s Office told FOX 5 Atlanta that at least 88 people had been defrauded in Georgia, with losses totaling approximately $3.2 million.
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Since then, officials say more victims have come forward from other states and possibly other countries. The district attorney’s office is now working with other agencies to identify additional victims and expand the investigation.
What you can do:
Authorities are asking anyone who purchased any version of XUSD or who has information about the case to contact investigators by email at xusd.tips@bakerso.org. Individuals are urged to include their name, contact information (address/phone number), details of the coin purchased, dates and amounts of investments (first/last), and the names and locations (city/state) of the brokers involved.
The list of associated entities includes:
- Robert Dunlap
- Brian Fontenot
- James (Jim) Nelson
- Richard Bailey II
- Michael Baldree
- META 1
- XUSD Blockchain
- XUSDP, XUSDP2, XUSDG, XUSDQ
- XUSD ICTS, ICTS TRUST ATOA
- XUSD ONE, XUSD 2.0
Dig deeper:
Meanwhile, in Texas, another suspect, Brian Fontenot II of Cypress, was recently jailed in Galveston County and is awaiting extradition to Georgia. He faces 90 criminal charges related to the operation, according to ABC 13 Houston. Fontenot and seven others, including XUSD founder James Nelson, were indicted in May in Baker County after a years-long FBI investigation was turned over to local authorities.
Investigators say that in 2021, during a meeting in Georgia, XUSD representatives told potential investors that the coins were backed by precious mineral mines and a Chinese imperial gun box purportedly valued at $100 trillion.
Prosecutors allege that Fontenot and his partners raised over $3 million that year and transferred the funds to themselves and various side ventures.
Despite the indictments, XUSD continues to operate. In March, the company secured a "historic sponsorship" with the Quad City Steamwheelers, an Indoor Football League team in Illinois. In a video posted to YouTube, Fontenot appears during halftime at a Steamrollers game claiming that XUSD is "the most powerful stable coin in the world," backed by $414 trillion in physical assets—an amount more than 14 times the size of the U.S. economy.
Fontenot is reportedly not contesting his extradition to Georgia.