2015-10-08



(credit: GEMCOINS -AFG)

A Southern California city council member resigned from his position Tuesday evening after being named as a defendant in a new lawsuit involving a Bitcoin-like cryptocurrency known as Gemcoin.

Last week, the Securities and Exchange Commission announced that it had sued an Arcadia-based company over an alleged Ponzi scheme resulting in a loss to investors of at least $32 million. If the government’s accusations are correct, that would make Gemcoin one of the largest digital currency-based financial schemes ever.

John Wuo, who had served on the Arcadia City Council for 12 years—including three terms as mayor—told his colleagues that he was stepping down due to "health and personal reasons," according to the Los Angeles Daily News.

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