Saransh Sharma Files Response to Fraud Allegations in 4NEW Crypto Case
On Monday, October 21, 2024, Saransh Sharma filed an answer in the United States District Court for the Southern District of Florida in response to John Day’s amended complaint. The case involves allegations of fraud and theft tied to Sharma’s association with 4NEW Ltd. and its cryptocurrency, KWATT.
In his response, Sharma denied all allegations of wrongdoing specified in the complaint. The lawsuit, initiated by John Day, claims that Sharma, along with Varun Datta and 4NEW, engaged in fraudulent activities that led to Day suffering financial losses. The plaintiff asserts that false statements about the cryptocurrency’s value and the business operations of 4NEW were made to persuade him to invest in KWATT.
Sharma admitted to being a resident of Florida and acknowledged his role as President of 4NEW during the time in question. However, he denied any knowledge of or involvement in the alleged fraudulent statements attributed to him or the other defendants. Specifically, he rejected claims that he knowingly made false statements to potential investors, including Day, about 4NEW’s business and its cryptocurrency.
The complaint outlines that 4NEW began marketing KWATT in 2018, with Day alleging that he relied on misleading information when he purchased the cryptocurrency. Day claims that he continued to invest in KWATT until he found out that the cryptocurrency was essentially worthless. He contends that despite his requests for compensation, neither 4NEW nor its executives provided any remedy for his losses.
In the answer, Sharma stated that he lacks sufficient knowledge to either confirm or deny numerous allegations made by Day regarding statements and actions taken by both himself and Datta. He specifically contested the assertion that he and Datta made false claims during an appearance at the North American Bitcoin Conference in Miami in January 2018, where they allegedly promoted 4NEW and its cryptocurrency.
Sharma’s response also addressed the basis for the court’s jurisdiction over the case. He denied any wrongdoing that would establish the Southern District of Florida as the appropriate venue for the trial, disputing assertions that significant actions leading to the lawsuit occurred within the district.
The legal proceedings are ongoing as Sharma’s answer now paves the way for the next steps in the litigation process. The case raises questions about the responsibilities of cryptocurrency executives and the potential consequences of misleading investors in the rapidly evolving digital asset market.
Please contact BlockTribune for access to a copy of this filing.
