Fred D. Thompson U.S. Courthouse and Federal Building, U.S. District Court for the Middle District of Tennessee in Nashville. Courtesy of U.S. GSALavish 'Lies' Led to Investors Being Fleeced in Nine-Figure International Crypto Scam
Among the false representations the defendants allegedly made was that a crypto investment firm was sponsored by the “All-Party Parliamentary Group” in London and it had retained the legal services of an Am Law 100 firm, according to the complaint.
January 10, 2025 at 04:57 PM
3 minute read
What You Need to Know
- Some investors in Phoenix Community Capital and its successor, Xeta Capital LLC, sued the companies.
- The investors alleged various schemes and tactics by the defendants involving cryptocurrencies.
- The attorney pinpointed a telltale pattern he observed in the action.
The founders of two cryptocurrency investment firms, one of which was, at one point, reportedly valued at $800 million before it mysteriously shut, are facing a lawsuit in a federal district court in Tennessee over allegations that include fraud and the unregistered sale of securities.
Gary Blackburn of the Blackburn Firm in Nashville, Tennessee, represents two dozen investors in the defendant investment firms, Phoenix Community Capital and its successor, Xeta Capital LLC, which were sued along with their four founders over the “tens of millions of dollars” that they allegedly fleeced from the plaintiffs.
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