Antony Liu and Mengxian Zhang, the principal men behind the MCash token, has been found guilty of duping by a New York district court.
According to a court filing, the men had lured the plaintiff; a Chinese named Lijun Sun to invest $2 million in Mcash tokens. The men had promised Sun that the value of the token would rise in little or no time and made false representations about their project and the investment opportunity.
However, it was only after wiring $2 million to the bank account of Blue Stone Capital Group, the company under which Mcash Token operates, that Lijun Sun discovered the following loopholes:
His investments will be locked up for at least one year
He would sign the Token purchase agreement with an undisclosed company other than Blue Stone Capital Group
MCash was unregistered as a security with the U.S SEC and as such had no legal market in the country.
Upon requesting a payback, the court filing says that Antony Liu and Mengxian Zhang refused to return the money to Lijun Sun. Instead, they advised him to invest the $2 million in a fund managed by Blue Stone Capital Group which was never a part of the initial agreement.
By misappropriating and deceiving Lijun Sun into investing $2 million, Antony Liu and Mengxian Zhang committed common law fraud under New York law.
Therefore, Lijun Sun is entitled to compensatory damages for $2 million plus interest and punitive damages for $6 million.
In a similar development, we reported in January that Israeli-based crypto investor Moshe Hogeg was sued for a $4.6 million. The plaintiff in Hogeg’s case is also a Chinese investor who participated in the Stox ICO conducted in 2017.
Zhewen Hu is charging Hogeg and his company Stox Technologies Ltd. for misusing his $3.8 million investment.
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