“You have a limited number of Crypto available (they are set – you cannot create more of any one currency).”
That is 100% incorrect. That is what mining is all about although I think there are some that have tried that model where they start out with X coins and there are no more but most of them I am aware of you CAN create coins. It does become harder to create coins as more coins are created.
That aside what you have described is not “crypto” you have described a scam that has played out any number of times whether it was crypto, stocks or monkeys.
.