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Bitcoin fraud & unfair competition class action lawsuit filed
Posted On 01 Oct 2017
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International attorney Dr. Jonathan Levy announced in an email he sent to CoinReport a global class action lawsuit alleging unlicensed banking, unfair business competition and fraudulent practices by cryptocurrency operators.
The lawsuit is Christopher Strunk vs. Satoshi Nakamoto et al. Strunk, a New York-based consumer advocate, alleges his private banking venture, which sought a New York license, was crippled by bitcoin operators providing similar services with no real capital, no regulation and no license.
Dr. Levy said in the email, “It is my well-founded belief that the profits in Bitcoin, Ethereum and all the other digital coin based ventures are largely based in fraud, pump and dump tactics, theft and securities violations. The world’s largest holder of Bitcoins, worth more than $4 billion is of course the inventor and promoter. And that is a conservative estimate since we have no way of knowing how many proxy accounts the mysterious Satoshi Nakamoto gang controls.”
It is a rule of economics, says Dr. Levy’s email, that for every winner, there must be an equal number of losers, and in this case, there are lots of victims. The winners, says the email, are the promoters of cryptocurrencies, token makers or so-called miners, High Yield Investment Programs, Initial Coin Offerings (ICOs) and all the varied bitcoin-assisted scams and fraud. Mentioning the Fortune Magazine as the source, Dr. Levy says even when investors have broken the bank on bitcoin and ethereum, their accounts have been inexplicably hacked and drained.
Dr. Levy goes on to mention recent bitcoin news, including JP Morgan’s Jamie Dimon claiming the [bitcoin] fraud is so bad that “people will die!”, the SEC issuing a sweeping warning, the Chinese government outlawing ICOs and Fortune, Forbes and The Economist exposing what gives the impression of a massive fraud bigger than the Madoff and Stanford Ponzi schemes combined.
The lawsuit may affect those who have been a victim or investor in bitcoin, ethereum and other cryptocurrencies or blockchain and fintech fraud utilizing cryptocurrencies, says the email, adding losses may be actual or lost profits. Dr. Levy advises those who have invested in such ventures may be a victim and not know it.
Dr. Levy is licensed and admitted to practice law in the US, Europe, Africa and the Caribbean. He is best known for his class action lawsuits against the UBS Bank and the Vatican Bank and for representing high profile clients like the former deputy prime minister of Yugoslavia and the former president of Taiwan. Dr. Levy is also an adjunct professor of international law and political science.
Image credit – Sirius, a.k.a. Martti Malmi (CC BY 3.0)
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Somebody needs to tell him ‘Satoshi Nakamoto’ is long gone.
The people behind these pump and dump schemes and responsible for turning Bitcoin into a giant ponzi are called Blockstream Inc. and Core.
That is where any investigation must look, these people have been well know to engage in shady practices for years.
“It is a rule of economics, says Dr. Levy’s email, that for every winner, there must be an equal number of losers”
Dr. Levy certainly doesn’t have a doctorate in economics. In fact, it sounds like he wasn’t even paying attention in his High School economics class or he would know that in every voluntary exchange both parties are winners and better off than before the exchange, otherwise they wouldn’t make the transaction at all.
They just have to expect that they’ll be better off, there’s no guarantee they’ll be better off from a voluntary transaction. Risk is ever present.
What court was the lawsuit file?
A Request for Consultation and Remediation requesting that at least €10 billion in a compensation fund be set aside for victims of cryptocurrency related crime and fraud was filed by lawyer Dr. Jonathan Levy on behalf 30 victims with losses totaling over €15 million on June 3, 2019. The European Union has now responded and Dr. Levy replied.
https://thebitcoinnews.com/eu-responds-to-victims-of-cryptocurrency-fraud-and-crimes-seeking-10-billion-in-restitution-from-european-union/?fbclid=IwAR3V63cfzhgCcwiar-L1aquILrxjShxmpvhdNuYIR5aXfyziIpdjY0ejCtE