Bitcoin Latinum, sponsor of Phil Hellmuth, is being hauled into a California court over allegations of securities fraud. Last week, a lawsuit was filed against Bitcoin Latinum corporate entity GIBF GP, Inc., as well as founder Donald Basile and 10 co-defendants.
False ClaimsThe lawsuit was brought by Arshad Assofi who alleges that he was defrauded of $15 million through false claims made by Basile and Bitcoin Latinum.
The court docket read as follows: “Complaint alleging crypto-based securities fraud in Arshad Assofi v. Donald Basile, d.b.a. Bitcoin Latinum, of Delaware, at the U.S. District Court for the Central District of California.”
Allegations include unregistered sale of securities in violation of both California law and the Securities Exchange Act as well as various frauds.
Assofi also accuses Donald Basile of making unsupported claims,breaking promises, and using company money for personal use. Basile allegedly told Assofi that There would be a $50 million investment from large companies and $100 million from a Dubai-based investor. He is also said to have claimed that Bitcoin Latinum is the only insured cryptocurrency and fully insured by Marshall McKellan.
Double TroubleThis is the second lawsuit aimed at Bitcoin Latinum to be filed this year. Back in February, The fledgling cryptocurrency also faced accusations of fraud in a Michigan court leading to a 95% fall in value amid talk of investment funds being “diverted and misappropriated for personal use.
A statement released denied all claims and informed the plaintiffs that they would be countersued for more than $1 billion each.
“It is the official stance of Bitcoin Latinum that the accusations are without merit. Bitcoin Latinum neither had a relationship with nor received any investment from the plaintiffs.”
This whole story is now starting to look like Bitcoin Latinum started life with good intentions and big dreams but it is now all falling apart. The idea to try and cash in on Bitcoin’s fame hasn’t helped one bit and, in fact, has more than likely caused more harm than good to the company’s public image.