The Phoenix investors accuse it of being involved in an exit scam, and the project owner has filed a motion to dismiss the lawsuit.

PANews, July 4 - According to Cointelegraph, investors of the cryptocurrency project The Phoenix have accused the current head, Daniel Ianello, of being involved in an exit scam and have filed a lawsuit in the federal court of Tennessee. The plaintiffs claim that after Ianello took over Phoenix Community Capital in October 2022, he shut down the smart contracts and transferred hundreds of thousands of dollars of investors' funds, while also deleting Discord posts and earlier versions of the website. Ianello has submitted a motion to dismiss the lawsuit, arguing that as a resident of Michigan, there is no jurisdictional connection to Tennessee, and denies participating in any securities sales. The project had promised to obtain investment opportunities unavailable in the retail market through a "large community asset pool" and distribute profits to token holders.