The recent news of the arraignment of Elchonon ('Elie') Schwartz represents a critical step forward in holding accountable those who engaged in fraudulent activities that caused harm to many, including Crowd Street, our members, and our employees. As victims ourselves, we share in the frustration and pain this situation has caused.
From the moment we learned about this fraud, we have been unwavering in our commitment to transparency and justice. Crowd Street uncovered the fraud and alerted federal authorities. To protect investors and uphold our principles, we provided substantial resources—millions of dollars—to initiate the appointment of an independent trustee to recover funds for victims. Additionally, we directly cooperated with and provided substantial support to federal authorities to build the case against those responsible.
This arraignment marks a significant milestone. While the presumption of innocence remains until proven guilty, we are heartened to see the judicial process moving forward. Justice is not a cause for celebration but for reflection, and we remain committed to supporting this process to its rightful conclusion.
Our focus remains on protecting and restoring investor trust. We will continue to advocate for accountability and fairness, recognizing that this journey is far from over. To the investors and stakeholders affected, we extend our deepest gratitude for your patience and resilience.
The pursuit of justice is long and complex, but as this case progresses, we are reminded of why we stand firm in our values. We hope this moment serves as a reminder that, in time, the scales of justice do work.
