The dismissal request for the TradeAI/Stakx Ponzi scheme case has been rejected, with the involved amount reaching $440 million.

ZkProver · 2026-03-24T01:08:52+00:00

A federal judge in the Southern District of New York has rejected the defendants' motion to dismiss in the TradeAI/Stakx case, allowing the case to proceed. The case involves a Ponzi scheme marketed as NFT and cryptocurrency investments that resulted in losses exceeding $20 million. The defendants have been ordered to disclose addresses, and failure to comply will result in a default judgment.

ZkProver

2026-03-24 01:08:52

Abstract generation in progress

ChainCatcher News: U.S. District Judge Lewis Kaplan in the Southern District of New York has dismissed the motion to dismiss filed by the defendants in the TradeAI/Stakx case. The case will proceed.

The lawsuit was filed by cryptocurrency law firm Burwick Law, accusing multiple defendants of operating a Ponzi-like fraud scheme using NFTs and cryptocurrency investment pools, promising high returns to investors. Estimated losses have already exceeded $20 million, with the total involved amounting to approximately $440 million. The court rejected all of the defendants’ defenses regarding jurisdiction, venue, and service of process.

Regarding defendant Cyrus Abraham’s refusal to respond due to alleged technical flaws in the service process, the judge clarified that litigation is not a game of hide and seek. Abraham is required to disclose his current residential address to the plaintiff’s law firm by March 31, or face default judgment and further sanctions. The court also extended the formal service deadline to April 22 and authorized alternative methods of service, including via Ethereum wallet, email, and social media.

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