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

ChainCatcher news, Judge Lewis Kaplan of the Southern District of New York Federal Court has ruled to dismiss the motion to dismiss filed by the defendants in the TradeAI/Stakx case, and the case will proceed.

This case was filed by cryptocurrency law firm Burwick Law, accusing multiple defendants of operating a Ponzi-like fraud scheme using NFTs and cryptocurrency investment pools as vehicles, promising high returns to investors. The estimated losses have now exceeded $20 million, with the total involved amounting to approximately $440 million. The court rejected all of the defendants’ defenses regarding jurisdiction, venue, and service of process.

Regarding defendant Cyrus Abraham’s refusal to respond on the grounds of technical flaws in the service process, the judge explicitly stated that litigation is not a hide-and-seek game. Abraham is required to disclose his current residential address to the plaintiff’s law firm by March 31, or face default judgment and further sanctions. The court also extended the formal service deadline to April 22 and has authorized alternative methods of service via Ethereum wallet, email, and social media.