Houstonian on lost crypto investment: 'I’ll just go back to square one and just rebuild from there'

Crypto investments have enjoyed immense popularity in recent years, but as a Houston man would learn, what’s considered the next big thing in finance has a dark side.

According to a report from Houston NBC affiliate KPRC, Jeff McCollum lost over $200,000 he invested in cryptocurrency through an online company. McCollum told the station that the funds are inaccessible.

He laments he “can pretty much lose everything,” per the report.

“I’ll just go back to square one and just rebuild from there,” McCollum said, KPRC reported.

The station reported that while McCollum has supposedly over $420,000 in available cryptocurrency, his attempt to withdraw even $2,000 worth was unsuccessful.

“It says, ‘Sorry your account is currently not available to withdraw funds,’” he told KPRC.

According to McCollum, a friend connected him with a purported financial advisor who suggested he invest with the company he’s currently at odds.

McCollum recalled to KPRC how his initial investments were paying off but he sensed something was off when the company directed him to pay personal income tax during a withdrawal attempt.

“As soon as that happened, I knew something was wrong,” he told the station. “I had borrowed from my mother’s retirement. I had borrowed from my own 401k.”

KPRC reported that McCollum tried to hash things out with the company to no avail.

“I tried to work with them back-and-forth and everything that they would say it always just ended up in the same thing, ‘No, you have to give us money from external funds,’” he said, the station reported. “I said you have everything; I have nothing else. I have the shirt on my back, that’s it.”

Richard Rosso with RIA Financial told KPRC that individuals looking to make crypto investments must exercise plenty of caution.

“I always say stick with the big boys if you do want to look at crypto,” Rosso said in the report.