A proposed class action filed Monday in Manhattan federal court accused the founders of a cryptocurrency project of defrauding investors in a sham artificial intelligence venture that unraveled after one founder allegedly staged his own death, a move that helped divert scrutiny as the token’s price collapsed and insiders exited with millions of dollars.
Max Burwick, the managing partner at Burwick Law, represents the plaintiffs in their lawsuit against defendants Jeffry Yu and Agustin “Tint” Cortes. He said that what’s important about the market-making allegations in this case is that they are not novel or exotic; they are the same mechanics that underpin nearly every pump-and-dump scheme we see in the crypto industry. […]
During the collapse, the lawsuit alleged, Yu escalated the deception by publicly staging his death, broadcasting what appeared to be a suicide and arranging for an obituary to be published. He did so to allegedly divert attention from the missing technology, collapsing token price and mounting questions surrounding insider conduct and trading activity.
Yu later resurfaced alive, the complaint said, with him posting photographs of himself holding large amounts of cash and continuing to launch new cryptocurrency projects.
Source: Crypto Founders Accused of Fake AI, Market Manipulation and Staged Death | Law.com