Bitwise hit with lawsuit over fraud and 'pump and dump' scheme 😮

Legal Battle Unfolds Between Bitwise Asset Management and Mukamal Family

The Mukamal family has taken legal action against Bitwise Asset Management, alleging top executives engaged in fraudulent activities that led to significant financial losses for investors. The lawsuit, filed in the New York Supreme Court, accuses Bitwise of fraud, negligence, and a “pump and dump” scheme.

Allegations of Securities Fraud and Mismanagement

The Mukamal family, early investors in Bitwise, claim that CEO Hunter Horsley, President Teddy Fusaro, and CIO Matt Hougan misled investors and executed a scheme that resulted in over $2 million in damages. According to the lawsuit, events dating back to March 2018 highlight the alleged fraudulent actions of Bitwise executives.

Investment in Bitwise HOLD 10 Private Index Fund
Alteration of investment terms in April 2020
Reckless and negligent pump and dump scheme
Liquidation campaign resulting in losses

Implications and Consequences of Allegations

The lawsuit accuses Bitwise executives of securities fraud and negligent mismanagement, pointing to actions that devalued investments for thousands of investors. The Mukamal family liquidated their initial investment but reinvested based on misleading assurances from Bitwise.

Criticism of fund management fees and performance
Substantial loss leading to damages for the family
Reckless and self-serving management practices alleged

Breach of Fiduciary Duty, Negligence & Fraud Allegations

The lawsuit raises serious accusations against Bitwise, including breach of fiduciary duty, negligence, fraud, and more. The Mukamal family seeks damages, legal fees, and expenses, highlighting potential consequences for the company’s reputation and operations.

Impact on Investors and Future Operations

Allegations of fraud and misconduct in the crypto space have far-reaching implications for investors and the industry at large. The legal battle between Bitwise and the Mukamal family sheds light on issues of trustworthiness and accountability within the sector.

Hot Take: Upholding Integrity in Crypto Investments

As the legal battle unfolds, investors must prioritize due diligence and transparency when engaging in crypto investments. Allegations of fraud and mismanagement underscore the importance of holding companies accountable for their actions.