Motion to Dismiss Filed in DePo Cryptocurrency Investment Lawsuit

On Wednesday, April 3, 2024, Theodore R. Dunham Jr filed a motion to dismiss the breach of contract and fraud lawsuit against him in the US District Court for the Western District of Oklahoma.

Paul T. Mak sued Dunham for over $150,000, claiming Dunham had failed to deliver on promises made in investing in the DePo cryptocurrency project, where Dunham served as CEO. In his complaint, Mak alleged that Dunham breached their joint venture agreement and fiduciary duty when Mak’s DePo tokens were not converted to the new Arc tokens as Dunham had announced. Mak further accused Dunham of unjust enrichment and violating consumer protection laws through alleged misrepresentations.

However, in his motion to dismiss, Dunham argued that Mak had failed to establish the key elements of the claims in his complaint. Dunham asserted that the complaint lacked details proving a joint venture was formed between himself and Mak. It did not show they jointly owned property related to DePo, had an agreement to share profits and losses, or cooperated on the project as required. Dunham also claimed the complaint provided no evidence of a fiduciary relationship existing.

Regarding unjust enrichment, Dunham pointed to disclosures Mak received warning that DePo tokens may have no value and not be a speculative investment. For the consumer protection law violation, Dunham argued his actions did not involve a consumer transaction and Mak was not deceived to his detriment by any representations. Finally, Dunham said the fraud-related aspects of the complaint were not pleaded with sufficient particularity regarding time, place, and consequences of the alleged misrepresentation.

If granted, Dunham’s motion to dismiss would end the lawsuit at an early stage without the need for further legal proceedings.

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