TechFlow News, March 24: According to Cryptopolitan, U.S. District Judge Lewis Kaplan of the Southern District of New York ruled on March 24 to deny the defendants’ motion to dismiss the TradeAI/Stakx case, allowing the case to proceed.
The lawsuit was filed in 2024 by cryptocurrency law firm Burwick Law, accusing multiple defendants of operating a Ponzi-style fraud scheme using NFTs and cryptocurrency investment pools, promising investors high returns. Estimated investor losses currently exceed $20 million, with the total涉案 scale reaching approximately $440 million.
The court rejected all defendants’ arguments regarding jurisdiction, venue, and service of process. Regarding defendant Cyrus Abraham’s refusal to respond to the suit on grounds of technical defects in service, Judge Kaplan explicitly stated that litigation “is not a game of hide-and-seek,” ordering Abraham to disclose his current residential address to the plaintiff’s law firm by March 31—or else face a default judgment and further sanctions. The court has also extended the formal service deadline to April 22 and permitted alternative methods of service, including via Ethereum wallet, email, and social media platforms.
