Utah Lawsuit Accuses New DAO Jones Operators of Misleading Investors in Nonexistent Crypto Fund
On Wednesday, July 1, 2026, James Finn filed a complaint in the US District Court for the District of Utah against Devin Elliot, Niina Fujioka, and JKN, LLC d/b/a New DAO Jones, alleging a fraudulent scheme to solicit investments in a purported cryptocurrency fund.
Finn, a resident of Puerto Rico, claims he was induced to invest approximately $50,000, including $24,999.99 and 0.527 Bitcoin, into the New DAO Jones Fund (NDJ Fund) based on false representations about its existence, performance, management, and profitability.
The lawsuit asserts that Elliot and Fujioka, who allegedly controlled JXN, LLC d/b/a New DAO Jones (the entity managing the fund), made materially false and misleading statements. These included claims that the NDJ Fund was professionally managed, generated consistent returns, employed sophisticated risk-management strategies, and allowed investors to redeem funds on short notice. Finn alleges that he relied on these representations when entering into an investment agreement with Elliot in September 2021.
According to the complaint, Finn received an email from Fujioka in November 2021, which included a Q3 2021 earnings report and a fund overview. These documents purportedly detailed consistent weekly earnings of 3%, assets under management reaching $900,000 by the end of Q3, and projections of $1 million by October and $10 million by the end of 2021.
The materials also stated that the fund aimed to increase returns while minimizing risk and guaranteed investors could redeem capital within 24 hours. However, Finn claims these documents were not provided before his investment and that the substance of these written statements mirrored the earlier verbal assurances from Elliot.
The complaint further states that the November 3, 2021 email was the last communication Finn received from any representative of JXN. Finn alleges he never received promised ROI calculations or distributions, nor any further quarterly reports or updates on app development. Attempts to locate a JXN website were unsuccessful. In December 2024, Finn discovered the lack of expected reports, accountings, returns, and distributions, and subsequent attempts to contact Defendants regarding his investment were met with no response.
A significant development highlighted in the lawsuit is the administrative dissolution of JXN, LLC in May 2025, without prior notice to Finn. The complaint alleges that Defendants continued to retain investor funds while concealing this dissolution and failing to account for the funds. Finn asserts that the disappearance of investor funds, lack of verifiable evidence of operations or assets, cessation of communication, and undisclosed dissolution of the management entity support claims for treble damages and attorney fees under the Utah Uniform Securities Act.
Finn is seeking damages for violations of federal securities laws, including Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, as well as violations of the Utah Uniform Securities Act. Additional causes of action include fraudulent misrepresentation, fraudulent nondisclosure, conversion, breach of fiduciary duty, breach of contract, breach of the implied covenant of good faith and fair dealing, and unjust enrichment.
The total amount in controversy is stated to be no less than $150,000.00, with Finn seeking recovery of his lost capital investment, which has appreciated in value since his initial investment.
Please contact BlockTribune for access to a copy of this filing.
