Investor Sues Over Cryptocurrency Venture, Alleging Fraud and Breach of Contract

On Monday, December 9, 2024, Jason Kirschenbaum filed an amended complaint in the US District Court for the District of Colorado against several defendants, including Stephane De Baets, Elevated Returns, LLC, 315 East Dean Associates, Inc., and others. The complaint stems from Kirschenbaum’s allegations of fraud and breach of contract related to a cryptocurrency venture that he claims resulted in substantial financial losses.

Kirschenbaum, who resides in New York, asserts that he was promised a 25% equity stake in the venture, which aimed to create a cryptocurrency backed by real estate assets, specifically the St. Regis Aspen Hotel. According to the complaint, Kirschenbaum invested millions of dollars and significant effort into the project, but he was later cut out of the deal by the defendants, who he claims manipulated the market and engaged in deceptive practices to undermine his investment.

The complaint details Kirschenbaum’s initial discussions with De Baets and other partners, which began in late 2015. He alleges that the parties agreed on an equity split in which Kirschenbaum would receive 25% of the equity, while De Baets and other partners, Thosapong Juruthavee and Ravipan Juruthavee, would hold 25% and 50%, respectively. Kirschenbaum claims he invested not only cash but also his expertise and relationships to promote the venture.

Kirschenbaum’s complaint outlines a series of events leading up to his current legal action, including a shift in the venture’s focus from the Sunset Tower Hotel in California to the Aspen Hotel. He claims that throughout these changes, he was continuously assured of his equity stake, which was also documented in various written agreements. However, he alleges that during ongoing litigation in New York, De Baets’s legal counsel denied Kirschenbaum’s entitlement to the promised equity.

The complaint further alleges that the defendants engaged in a fraudulent buy-back program related to the cryptocurrency, thereby restricting Kirschenbaum’s ability to redeem his investment at fair market value. Kirschenbaum contends that the defendants manipulated the market price of the cryptocurrency to their advantage, significantly harming his financial interests.

Kirschenbaum’s claims include breach of contract, conversion of his investment, and violations of Colorado law and the Securities Exchange Act. He seeks to recover his equity interest and the substantial sums he invested, as well as damages for the ongoing manipulation of the market affecting both his investment and the broader investing public.

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