$422K Lawsuit Accuses The Dharma Initiative Executives of Stealing Crypto Investment Money

On Monday, February 12, 2024, Eli M. Blatt filed an amended complaint in the United States District Court for the Southern District of Florida against Marc J Goldner, Rachel Korsen, Simon Divilov, and The Dharma Initiative, LLC.

According to the complaint, Blatt and Goldner had formed a company called Goldner Blatt Investments LLC in December 2021 to invest in assets like cryptocurrency miners and non-fungible tokens. Blatt alleges that Goldner made several misrepresentations that induced him to sign the operating agreement and wire over $422,000 to Goldner and a company called Compass Mining to purchase the assets.

However, Blatt claims Goldner never intended to use the funds to purchase assets for their company. Instead, Goldner allegedly converted the funds for his own benefit and that of Dharma Initiative, a company formed by Goldner, Korsen and Divilov. Blatt states Goldner never transferred ownership of the assets to their company and kept them under his own control.

With regards to the non-fungible tokens, Blatt states he wired $200,000 to Goldner based on representations they would be purchased for and assigned to their company. However, Goldner stored the NFTs in wallets under his own name instead of creating a wallet for their company.

For the cryptocurrency miners, Blatt alleges he wired over $222,000 to Goldner and Compass Mining based on representations three bundles of miners would be owned by their company and three by Dharma Initiative. But Blatt claims Goldner actually purchased the miners for his and Dharma Initiative’s benefit instead.

Blatt accuses Goldner of conversion, breach of contract and fiduciary duties. He seeks damages and asks the court to compel Goldner to transfer ownership of the assets to their company. With the downturn in the cryptocurrency market, Blatt also wanted to sell the assets but says Goldner and Dharma Initiative are now holding them hostage unless he meets baseless demands. The case is ongoing as Blatt aims to recover the funds he invested based on Goldner’s alleged misrepresentations.

Please contact BlockTribune for access to a copy of this filing.