Cypress man charged after telling investors his cryptocurrency was secured by a $100 trillion gun box, court documents reveal

Cypress Cryptocurrency Executive Faces Fraud Charges

Cypress, Texas – A cryptocurrency executive from Cypress is under scrutiny for his alleged involvement in schemes to defraud investors.

Brian Fontenot II, the Chief Technology Officer of XUSD, is currently in custody in Galveston County and is awaiting extradition to Georgia, where he faces a hefty 90 criminal charges linked to his operations.

In May, Fontenot along with seven others, including XUSD’s founder James Nelson, were charged in Baker County, Georgia. Their case has been the focus of a lengthy FBI investigation, which was ultimately referred to local authorities.

During a 2021 meeting in Georgia, investigators reported that an XUSD representative claimed the coins were backed by valuable mineral mines and boxes of Chinese Imperial Guns valued at a staggering $100 trillion.

“Honestly, I doubt Apple even has that much money,” remarked Geoff Berg, a lawyer in Houston representing victims of cryptocurrency fraud. “I really wonder if anyone on this planet has that kind of money.”

Prosecutors allege that Fontenot and his associates managed to raise over $3 million in 2021, redirecting the funds for personal use and other ventures.

Surprisingly, despite these serious charges, XUSD seems to be operating as usual. In March, the company secured a naming rights deal with the indoor football league team, The Quad City Steamwheelers.

In a YouTube video recorded during a halftime event, Fontenot claimed XUSD was “the most powerful and stable coin in the world,” supposedly supported by a $414 trillion asset pool in physical assets.

To put that in perspective: it’s over 14 times the size of the entire U.S. economy.

The court documents reviewed did not specify whether the investments came from the Houston area or detail who the investors were.

“If the claims are as outrageous as a $100 trillion box of Chinese guns, then it’s concerning. Many victims will likely be elderly or individuals with mental disabilities,” Berg stated.