TradeAI/Stakx Ponzi scheme case withdrawal request rejected, involving a scale of 440 million USD

ChainCatcher news: Judge Lewis Kaplan of the United States District Court for the Southern District of New York has ruled to dismiss the motion to dismiss filed by the defendants in the TradeAI/Stakx case, and the case will continue to move forward.

This case was brought by the cryptocurrency law firm Burwick Law, alleging that multiple defendants used NFTs and cryptocurrency investment pools as vehicles to operate a fraud scheme of a Ponzi-like nature, promising high returns to investors. The losses are currently estimated to have exceeded $20 million, and the total amount involved is approximately $440 million. The court rejected all of the defendants’ defenses regarding jurisdiction, venue, and service of process.

With respect to defendant Cyrus Abraham’s refusal to respond on the grounds that there were technical defects in the service process, the judge stated clearly that litigation is not a game of hide-and-seek. Abraham is required to disclose his current residential address to the plaintiff’s law firm by March 31, or he will face default judgment and further sanctions. The court also extended the formal service deadline to April 22, and has allowed legal documents to be served through alternative methods such as an Ethereum wallet, email, and social media.