Wednesday, October 27, 2021

Crypto-trading hamster ‘created $1m in fund for investors’ lawsuit claims

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It has been causing gains on bitcoin and others, but a lawsuit claims the company stole $1m from investors

What’s not to like about a crypto-trading hamster? Well, according to lawyers working on behalf of an investor who claims to have lost $1m through the platform, Goxx is a badly managed operation, full of well-intentioned souls who have not realised what they’re up against.

Samuel Sofaer, a software engineer from New York, is suing Goxx over the alleged misuse of funds collected from investors, including a $400,000 investment he made last year.

The campaign to bring Goxx down was kickstarted by two other investors, Jeffrey Tucker and Bryce Hoffman, who have hired California-based law firm Norwalk, LLP to seek a judgment against Goxx for fraud, causing the firm to file a lawsuit in Brooklyn federal court, according to court documents.

The suit alleges that Goxx controlled through A+ Money, a digital currency exchange based in Iceland, and other BitStamp Ltd entities transferred the investors’ money through accounts in New York.

The defendants misrepresented the alternatives to Goxx’s currency, the lawsuit said. And Goxx did not disclose that it was essentially a shell company, led by two “confused Englishmen” with few connections to the cryptocurrency world, it added.

The funds were transferred through more than 80 offshore accounts to entities based in several countries, from Latvia to India, it said.

Goxx could not be reached for comment.

Attorneys for the plaintiffs said the firm had already racked up a sizable legal bill.

They are seeking a court order forcing the defendants to account for the funds, claiming the funds have been frozen and threatened with seizure by various governments.

At this point, it seems, Goxx is trying to undo what it’s done.

The company’s logo on its website and other social media is for XRP, a form of digital currency with the nickname “gravy tax” because of its role in social welfare funds.

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