Investors Accuse Crypto Project Managers of Financial Misconduct
On Monday, December 30, 2024, Grace Jeon and Denise Straessler filed a complaint in the California Superior Court against Xingchen Li, Ying Xue, and several affiliated companies, including Aion Global LLC, Aion Mining LLC, Aion Ventures LLC, and Aion Hub LLC. The plaintiffs allege various financial misconducts, including violations of the California Corporations Code and breaches of fiduciary duty.
The complaint outlines claims for rescission under the Corporations Code, asserting that Jeon and Straessler invested substantial sums in investment projects promoted by Li and Xue, who are identified as the managers of Aion Global LLC. The plaintiffs contend that they were misled about the security of their investments and the operational status of the projects.
According to the allegations, Jeon invested a total of $20,000 in what was promoted as the “TikTok Project,” while Straessler contributed $10,000. The complaint claims that these investments were part of a broader scheme that brought in at least $14 million from various investors, with promises of high returns on investments. The complaint states that Li assured investors there was a “0% chance of losing everything” and that their capital would be returned within 30 days if they chose to exit.
Furthermore, the plaintiffs allege that Li misappropriated funds from the investments for personal use, including transferring significant sums into an online gambling account. The complaint details that between May and August 2024, Li reportedly moved $1.17 million from investor wallets into his personal gambling account, raising concerns about the integrity of the investment operations.
The complaint also discusses the Titan Project, another venture initiated by Li that purportedly raised $5 million through the sale of non-fungible tokens (NFTs). Jeon and Straessler claim they were led to believe they would receive a share of the income generated from Aion Ventures and its associated businesses, yet they allege they have not received any returns from these investments.
In addition to these projects, the complaint highlights another investment called “Beyond Horizons,” which Li claimed would convert traditional currency to cryptocurrency and promised high weekly returns. Jeon reportedly invested $350,000 in this venture, alongside additional investments that brought her total exposure to over $600,000 across the various projects. Similarly, Straessler’s investments in Beyond Horizons amounted to $405,000.
As the situation progressed, the plaintiffs allege that Li’s communication ceased and payments to investors were halted, raising suspicions about the viability of the projects. They claim that Li made repeated excuses for the delays, citing issues with liquidity and problems with financial institutions, yet no documentation was provided to substantiate these claims.
The complaint includes demands for jury trials on the basis of the alleged breaches of fiduciary duty and violations of the Corporations Code, which outlines regulations for securities transactions. Jeon and Straessler are seeking compensatory damages, rescission of their investments, and a thorough accounting of the funds involved in the alleged schemes.
The plaintiffs argue that adherence to the separate legal existence of the Aion entities allows for potential misuse of the limited liability structure, enabling Li and Xue to act without accountability. The complaint expresses a need for the court to hold the defendants responsible for their alleged actions and restore the plaintiffs’ investments.
Please contact BlockTribune for access to a copy of this filing.
