Victim of Deceptive Crypto Exchange Scheme Wins Final Default Judgment from Louisiana Federal Court Against No-Show Defendants

News | May 22, 2024 By:

On Wednesday, May 8, 2024, the United States District Court for the Eastern District of Louisiana granted a plaintiff’s motion for final default judgment in a cryptocurrency fraud case.

The case involved Jeysen Zivan Yogaratnam filing a lawsuit against John Doe a/k/a Darina Dubois and John Does 1-20. According to court documents, Yogaratnam transferred around $294,215 worth of various cryptocurrencies like Bitcoin and USDT into wallet addresses belonging to the defendants after being deceived. Yogaratnam believed he was using a legitimate cryptocurrency exchange application called CTRL-FX, but it was actually a fake app used by the defendants to steal his cryptocurrency holdings.

Yogaratnam hired a cryptocurrency tracing company called CNC Intelligence Inc. to track where his assets had gone. CNC was able to trace the stolen funds to specific digital wallet addresses controlled by the defendants on exchanges including Bitkub, Binance, and Blofin. Yogaratnam then filed a lawsuit against the defendants in February 2024 alleging conversion, unjust enrichment, constructive trust, and conspiracy.

None of the defendants ever appeared in court to respond to the allegations. The plaintiff filed motions for a temporary restraining order and preliminary injunction to freeze the defendants’ wallet addresses, which the court granted. They were also allowed to serve the defendants through an alternative method involving posting documents online and transferring legal notices via non-fungible tokens (NFTs).

In its ruling on May 8th, the court entered a final default judgment against the defendants. It found the defendants liable for conversion, unjust enrichment, and imposition of a constructive trust. The court analyzed relevant laws in Nevada, where the plaintiff resided. It determined monetary damages were appropriate and calculated the current value of the stolen cryptocurrencies to be $625,455.26 based on Bitcoin’s market price.

The court also granted a permanent injunction against the defendants transferring any of the plaintiff’s funds. It concluded such equitable relief was necessary to prevent irreparable harm since the defendants could continue moving the stolen assets without intervention.

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