Bitcoin Loan Dispute Leads to Legal Action in New York Court
On Thursday, October 10, 2024, Julian Mear filed a complaint in the US District Court for the Southern District of New York against Robert Caputo, alleging breach of contract and unjust enrichment. The lawsuit stems from Mear’s claim that he loaned 20 bitcoins to Caputo, who failed to repay the loan.
Mear asserts that the agreement between the two parties was established in early 2018 when they discussed an investment opportunity related to cryptocurrencies, particularly bitcoins.
According to the complaint, Mear and Caputo have been acquainted since around 2011 and have maintained a close relationship as family friends. The two frequently met in person and discussed various topics, including business and cryptocurrencies. Mear claims he was encouraged by Caputo, who had previously invested his own bitcoins in an arbitrage platform managed by individuals with Wall Street backgrounds.
On February 22, 2018, Caputo sent Mear a draft “Promissory Note for Digital Currency,” outlining terms for the loan, which included a repayment of 30 bitcoins in exchange for Mear’s loan of 20 bitcoins. The draft stipulated that any missed payments would incur costs, including attorney fees. Following this, Mear transferred 20 bitcoins to Caputo’s wallet address on the same day.
The complaint details that after the initial investment, Caputo made partial repayments to Mear, including a $6,000 cash payment and two bitcoins in September 2019. However, further payments were not made despite Mear’s requests for updates and repayments over the subsequent years.
In April 2020, Caputo reportedly informed Mear that he had secured a Paycheck Protection Program loan, which he claimed would allow him to repay the investment. The two reached an agreement via text message for Caputo to return the remaining 18 bitcoins with interest. However, subsequent communications revealed continued delays and unfulfilled promises regarding repayment.
Mear documented his attempts to arrange repayment, including a phone call with Caputo in April 2024, during which Caputo claimed the bitcoins had been invested with Marlon Beckford, who had not returned the funds. The complaint notes that Caputo subsequently directed Mear to seek repayment from Beckford, culminating in a text message on August 30, 2024, where Caputo repudiated their agreement, asserting that only Beckford was responsible for repayment.
As of the filing date, Mear alleges that he is still owed 18 bitcoins, which he claims is equivalent to approximately $1 million based on current market values. The complaint outlines two causes of action: breach of contract and unjust enrichment, asserting that Caputo gained an unfair advantage by receiving the loan without fulfilling his repayment obligations.
Mear seeks damages for the outstanding amount, including interest, attorney fees, and costs associated with the case.
Please contact BlockTribune for access to a copy of this filing.
