Lawsuit Claims Blue Ocean Capital Duped Investor Into Buying $2M Worth of MCash
There’s never any shortage of financial scams perpetrated against those unfamiliar with the asset class and the latest scam allegedly involves a virtually unknown cryptocurrency called MCash Tokens.
According to a February 1 legal filing, plaintiff Lijun Sun, a citizen of China and resident of California, transmitted a total of $2,000,020.93 to Blue Ocean Capital Group, Inc., a New York-based investment firm, to purchase MCash Tokens.
“Not only was the MCash Token not properly registered with the U.S. Securities and Exchange Commission, but more importantly, in connection with selling the MCash Token, Defendants made numerous misrepresentations and omissions that induced Plaintiff to invest $2 million,” reads the filing.
MCash is seemingly an Ethereum-based token that currently has no development, no exchange listings and is valued at $0.00. According to its website, MCash is “backed by MicroChain’s proprietary Gitium pubic chain based on DAG + IPFS + W-OTS + AVG technology.”
Blue Ocean Capital Group is a self-described investment management consulting firm based out of 1 Rockefeller Plaza in NYC. While the website has been taken down, a YouTube video celebrating the “Grand Opening Ceremony” at the Harvard Club in New York is still up. The video’s description claims the startup was developing a platform that would be a “major breakthrough in fund management.”
Strangely, the company received two awards at its launch ceremony. The “Most Innovative Enterprise” award was given by Felix W. Ortiz, the Assistant Speaker of the New York State Assembly. The second award was presented by Joseph “Joey No Socks” Cinque, a convicted felon and Trump family associate, who gave the blockchain startup the “Six-Star Diamond Award,” an award usually bestowed upon hotels and restaurants.
Adding to its list of supposed high-profile connections, the company claimed to have a strategic partnership with Nasdaq (NDAQ) through Bob McCooey, Nasdaq’s Asia Pacific chairman. While the announcement of this partnership is now down, the YouTube video claims McCooey gave the following speech at the launch ceremony:
I believe that the establishment of Blue Ocean Group will add new impetus to the development of trade cooperation between China and the United States. Since the establishment of diplomatic relations between China and the United States, Trade cooperation is deepening, capital market is a powerful booster for entrepreneurs and entrepreneurs, Nasdaq will cooperate with Blue Ocean Group to carry out capital investment more accurately, helping more entrepreneurs and entrepreneurs to [receive] IPO financing, continuously expanding the scale of the company.
Nasdaq did not immediately respond to our request for comment.
Sun is now going after Blue Ocean, seeking compensatory damages in the amount of $2 million plus interest. Additionally, Sun is asking for punitive damages of $6 million. The lawsuit, which was filed in New York federal court, names company president and CEO, Antony Liu, and Mengxian Zhang as defendants. Incidentally, if Sun wins the case, he will be one of the few investors to pull off a profit in the ongoing crypto winter.
More: Court Filings
In-Depth: The Cost of Dirty Money
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.