Kasparov Answers Conversion Claim in Dispute Centering on Crypto Wallets

News | July 1, 2024 By:

On Monday, June 17, 2024, Kasparov Pte Ltd. filed an answer to the counterclaims made by Joseph Zacherl in an ongoing legal battle between the two parties.

The case concerns allegations of conversion of digital assets contained in cryptocurrency wallets. Kasparov Pte Ltd, a Singapore-based technology company, originally filed a lawsuit against Zacherl in December 2022 claiming that he seized control of wallets containing valuable tokens and currencies without authorization. These included a wallet holding ROOK tokens as well as a second wallet containing $700,000 worth of USD Coin, a type of stablecoin tied to the U.S. dollar.

In response, Zacherl filed counterclaims against Kasparov Pte Ltd for unjust enrichment, breach of contract, breach of the implied covenant of good faith, and conversion. However, the court has since dismissed all counterclaims except for conversion.

In its answer filed in the US District Court for the Eastern District of North Carolina, Kasparov Pte Ltd denies the allegations made in Zacherl’s conversion counterclaim. The company asserts several affirmative defenses, including contributory negligence, lack of proximate cause, estoppel, and assumption of risk. Kasparov Pte Ltd argues that Zacherl caused his own harm and that his actions or those of third parties were responsible, not any improper behavior by the company.

The answer also provides Kasparov Pte Ltd’s version of events leading up to the dispute. It acknowledges that the two parties signed an agreement for Zacherl to provide services related to a project involving ROOK tokens and the KeeperDAO platform. However, it denies specifics of Zacherl’s claims regarding profits generated from trades on a Binance crypto exchange account that was originally set up to hold funds for the project.

Kasparov Pte Ltd admits to changing the password on this Binance account but denies allegations that it threatened Zacherl or seized valuable assets rightfully belonging to him. The company claims it lacks enough information about the details of discussions between the two parties and the value of digital holdings. Overall, Kasparov Pte Ltd firmly rejects Zacherl’s allegations of wrongful behavior.

The answer seeks to have the court fully dismiss Zacherl’s sole remaining counterclaim of conversion and requests damages, interest, and costs be awarded to Kasparov Pte Ltd.

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