TradeAI/Stakx Ponzi scheme case dismissal request rejected, involving a scale of $440 million

ZkProver · 2026-03-29T02:10:40+00:00

The judge of the Southern District of New York Federal Court dismissed the defendant's motion to dismiss in the TradeAI/Stakx case, and the case will proceed. The case involves a Ponzi scheme disguised as NFT and cryptocurrency investments, with losses exceeding $20 million. The defendant is required to disclose their address; failure to do so will result in a default judgment.

ZkProver

2026-03-29 02:10:40

Abstract generation in progress

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

This case was brought by the cryptocurrency law firm Burwick Law, alleging that several defendants operated a fraudulent scheme resembling a Ponzi scheme using NFTs and cryptocurrency investment pools, promising high returns to investors. Losses are currently estimated to exceed $20 million, with the total scale of the case approximately $440 million. The court dismissed all defense arguments raised by the defendants regarding jurisdiction, venue, and service procedures.

Regarding defendant Cyrus Abraham’s refusal to respond to the lawsuit due to alleged technical defects in the service process, the judge clearly stated that litigation is not a game of hide and seek, requiring Abraham to disclose his current residential address to the plaintiff’s law firm by March 31, or face a default judgment and further sanctions. The court also officially extended the service deadline to April 22 and has permitted legal documents to be served through alternative methods such as Ethereum wallets, email, and social media.

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