Court Grants Amended Injunction in Bruce Cohn Crypto Fraud Case
On Thursday, October 17, 2024, the US District Court for the Eastern District of Texas granted Bruce Cohn’s motion for an amended preliminary injunction in a case involving allegations of cryptocurrency fraud. The court’s decision follows a series of events wherein Cohn claimed to have been the victim of a scam orchestrated by Anna Popescu and associated entities, including TrustHFTwallet.com.
Cohn, who alleges that he was defrauded out of over $2.4 million, initially filed for a preliminary injunction in September 2024. The court had then ordered the freezing of accounts at four cryptocurrency exchanges linked to his allegedly stolen assets. The amended injunction allows the lifting of asset freezes on three accounts after their owners provided evidence demonstrating they were not involved with the defendants.
The case began in June 2024 when Cohn met Popescu through a dating website. According to court documents, Popescu claimed to be successful in cryptocurrency trading and introduced Cohn to the TrustHFTwallet platform. Cohn subsequently opened an account and followed Popescu’s guidance, depositing significant amounts of money. Over several months, he reportedly transferred over $2.4 million to the platform, believing he was engaging in legitimate trading.
However, Cohn’s attempts to withdraw his funds were met with obstacles from TrustHFTwallet, which stated that he needed to ‘level up’ his account by depositing more money. Feeling deceived, Cohn retained legal counsel and enlisted a blockchain investigations firm to trace his assets. Their investigation indicated that his funds were transferred to various cryptocurrency exchanges.
In the initial proceedings, Cohn sought an emergency temporary restraining order to freeze accounts that received his funds, which the court approved. Following the investigation, Cohn’s legal team submitted evidence indicating that several owners of the frozen accounts were not linked to the defendants. This prompted Cohn to request an amended injunction to lift the freeze on those accounts.
In granting the amended injunction, the court noted that Cohn met the necessary criteria for issuance, which included demonstrating a substantial likelihood of success on the merits, showing irreparable harm, and proving that the public interest favors the injunction. Cohn’s allegations include claims under the Racketeer Influenced and Corrupt Organizations Act (RICO), fraud, and conversion. He provided substantial evidence, including declarations from blockchain investigators, which supported his claims of a so-called “pig-butchering scam.” This type of fraud involves deceiving victims into investing in a fake trading platform.
The court found that Cohn’s claims had merit, supported by his documentation and the expert analysis provided. The court also highlighted the urgent need to prevent further dissipation of Cohn’s assets, noting that cryptocurrencies can be rapidly transferred, complicating recovery efforts.
As part of the injunction, the court ordered that the accounts associated with the addresses identified by Cohn be frozen to protect his potential recovery. The court emphasized that the public interest is significantly served by ensuring that victims of such scams can recover their assets and that the court has the authority to modify injunctions in light of changed circumstances.
The court’s order specifically restrains the defendants and their associates from withdrawing, transferring, or encumbering any assets held by the identified accounts. Cohn must serve copies of the order to the relevant parties to ensure compliance with the court’s directives.
Please contact BlockTribune for access to a copy of this filing.
