Lawsuit Accuses Aspen Coin Founder of Breach of Contract
On Monday, July 15, 2024, Jason Kirschenbaum filed a lawsuit in the United States District Court for the District of Colorado against Stephane De Baets, Elevated Returns, LLC, 315 East Dean Associates, Inc., and Aspen Digital, Inc.
The complaint stems from Mr. Kirschenbaum’s involvement with the defendants, which started in late 2015 and was related to the formation of real estate investment trusts and cryptocurrency ventures. According to the complaint, Mr. Kirschenbaum approached Mr. De Baets with the concept and structure for a single asset real estate investment trust focused on hotel properties. The lawsuit alleges the parties had multiple meetings to discuss partnership structures and opportunities, agreeing in 2016 that Mr. Kirschenbaum would receive 25% equity in ventures related to an “Initial Listing.”
While the first property targeted was the Sunset Tower Hotel in Los Angeles, the complaint states plans changed to use the St. Regis Aspen Hotel as the underlying asset when that deal failed to close. Mr. Kirschenbaum allegedly helped shepherd regulatory filings like the S-11 and worked extensively on preparing documents and financial models for what became known as Aspen REIT. Though Aspen REIT received SEC approval to raise $33.5 million in early 2018, the IPO was suddenly canceled that February by the defendants.
The complaint alleges Mr. Kirschenbaum invested over $1.3 million that October in the subsequent cryptocurrency venture Aspen Coin, which successfully raised $18 million to represent a stake in the Aspen Hotel. However, Mr. Kirschenbaum claims he has been unable to liquidate his tokens from the alleged market manipulations by the defendants. He also accuses them of engaging in a “sham” token buyback program that lacks real liquidity.
Additionally, the lawsuit states Mr. Kirschenbaum was supposed to receive equity in deals involving companies like Securitize but discovered his $333,000 investment in that firm was redeemed without his consent.
The complaint seeks damages and a declaratory judgment establishing Mr. Kirschenbaum’s 25% equity interest in the defendants’ ventures. He alleges multiple breaches of contract as well as overt acts of fraud by the defendants over the course of their business dealings.
Please contact BlockTribune for access to a copy of this filing.
