Australia's Renowned Crypto Fund Manager Dragged To Court, Citing $14.2 Mln’s In Losses.

Australia's Renowned Crypto Fund Manager Dragged To Court, Citing $14.2 Mln’s In Losses.

2019-03-20 | Selina Mathew

Australia's Renowned Crypto Fund Manager Dragged To Court, Citing $14.2 Mln’s In Losses.

In line with a recent report by native news agency ‘The Age,’ the founder of Australia’s primary on-line mattress retailer ‘OzMattress’ and crypto fund manager ‘Stefanos Papanastasiou’ is to be brought to court by his purchasers over the loss of around $14.2 Mln’s.

According to the report, Papanastasiou told his purchasers earlier in 2017 that he spent over half a millions in Australian dollars to develop an algorithm that delivers substantial returns via the trading of Bitcoin’s [BTC] & Ethereum [ETH] based tokens. In keeping with the claim filed by property developer Savvas Alexiadis, one among his clients, Papanastasiou owes him over AUD$2.7 Mln [around $2 Mln].

The case is filed within the Supreme Court of Victoria state that Alexiadis transferred over AUD$2.1 Mln into a Papanastasiou’s trading account. Moreover, he reportedly conjointly transferred an anonymous amount of Bitcoin [BTC] into wallets managed by Papanastasiou.

The claim conjointly cites messages allegedly transferred by Papanastasiou:

“Sam, don’t get caught-up within the details. Leave it to me. Let me know the login for ACX [trading account]. I will with whatever funds are in there ... Eyes on the prize Sam. Understood? Got your back.”

Additionally, the documents conjointly claim that Papanastasiou asked Alexiadis to transfer over $28,000 USD to his wife, nearly $25,000 USD to his sister and around $320,000 USD to a mattress supplier in Thomastown, promising to transfer an equivalent in crypto assets.

Furthermore, Papanastasiou and his wife named Shalini Ganapathy, defaulted on the acquisition of a AUD $5.44 Mln house earlier in Dec. 2017, when the price of Bitcoin [BTC] reached around $20,000 USD.

The website of Papanastasiou’s mattress retail business named ‘OzMattress’, is however offline at the reporting time. The claim conjointly added that Papanastasiou has repeatedly refused to offer an account of trading activity and didn’t comply with requests to repay the amounts asked by his purchasers.

In response to Alexadais’s claim to pay-back around $2 Mln, Papanastasiou reportedly stated:

“The Supreme Court action is something new to me, and i will defend myself against his claim as he has been compensated in more than $2.7 Mln’s, Sam [Alexadais] and his associates have plenty to answer for as the truth of events is immensely different and for more sinister.”

Mark Thompson, a former Australian Football coach also 'accused' of MDMA and methamphetamine trafficking, earlier in May last year, contributed over a million Australian dollars [around $709,000 USD] to Papanastasiou’s fund as one of his clients.

As 'reported' earlier, the Australian AML [Anti-Money Laundering] watchdog has recently suspended the registrations of two 'cryptoexchanges' in reference to an unrelated drug trafficking case.

While in other legal enforcement and crypto news, a U.S. district Attorney also conjointly recently 'charged' the founders of a global 'cryptocurrency' pyramid scheme that involved the promotion of an allegedly illicit crypto currency referred as “OneCoin.”

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