Lawsuit Accuses Frizzell Law Firm of Breaching Escrow Agreement in $2M Bitcoin Deal

On Tuesday, July 16, 2024, Asha Ventures and Knights Holdings filed a complaint in the United States District Court for the Eastern District of Texas against Frizzell Law Firm, Bill Frizzell, Thomas Flohr, and Dmitri Alexcandarovich.

The complaint alleges that in February 2024, the plaintiffs – Asha Ventures and Knights Holdings – agreed to act as guarantors for a Bitcoin transaction between Ecostructive Mining Company and Alexcandarovich. Under the terms of the deal, the plaintiffs would deposit $2 million into an escrow account held by Frizzell Law Firm to guarantee payment in case the buyer defaulted. However, the complaint states that on March 13, 2024, Bill Frizzell of Frizzell Law Firm transferred the escrowed funds to an account belonging to Thomas Flohr without receiving proper authorization as outlined in the escrow agreement.

Asha Ventures and Knights Holdings, represented by Houston-based law firm Jones Walker, have sued for damages against all defendants. The complaint raises nine causes of action including breach of contract, conversion, tortious interference with contract, breach of fiduciary duty, civil conspiracy, legal malpractice, negligence, unjust enrichment, and fraud. According to the complaint, the escrow agreement strictly prohibited Frizzell from releasing the funds without written confirmation from the buyer, guarantors, and satisfaction of procedures in the underlying purchase agreement. While Frizzell later admitted violating the terms, none of the defendants have returned the $2 million to date.

All defendants are from different states and countries. Frizzell Law Firm and Bill Frizzell are located in Texas, Thomas Flohr resides in New York, and Dmitri Alexcandarovich is believed to be a Russian citizen. The plaintiffs argue this federal court has jurisdiction due to the diversity of citizenship among the parties and the amount in controversy exceeding $75,000.

The complaint seeks monetary damages against all defendants and alleges the unauthorized transfer of funds has cost Asha Ventures and Knights Holdings $2 million plus interest, costs, and legal fees. It will be up to the court to determine the merits of the claims and whether the defendants engaged in misconduct resulting in damages owed to the plaintiffs.

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