Woman Awarded $1M in Default Judgment Against Crypto Scammers Posing as Digital Currency Group Employees

News | March 15, 2024 By:

On Tuesday, March 5, 2024, the US District Court for the Southern District of Florida issued a Final Default Judgment in favor of plaintiff Shikha Dubey in a cryptocurrency fraud lawsuit.

According to court documents, Dubey claimed she was defrauded of over $1 million in cryptocurrency by a group of defendants led by an individual known as Defendant “1,” who posed under the alias Michael Mario Mandozas and claimed to work for Digital Currency Group (DCG). Dubey alleged that between January and October 2021, Defendant “1” engaged her in online conversations and used fraudulent misrepresentations to induce her to transfer Bitcoin and Ethereum to cryptocurrency wallets controlled by the defendants.

In the March 2024 judgment, Judge Darrin P. Gayles found the defendants liable for damages of $1,140,487.46. The judge also ordered the defendants to transfer any cryptocurrency held in seven identified wallets to Dubey’s counsel within five business days in partial or total satisfaction of the monetary judgment. These wallets were tracked by Dubey and were alleged to contain the stolen funds based on blockchain analysis of transactions.

Additionally, the judgment permanently restrained and enjoined the defendants from maintaining or using the identified cryptocurrency wallets, inducing investments in the fake “DCG” platform, and taking other actions to circumvent the court’s order. The court retained jurisdiction to enforce the judgment and enter further orders.

Dubey had filed the original complaint against Defendant “1” and unnamed associates in November 2023, claiming violations of federal RICO statutes and seeking damages for the stolen cryptocurrency. As the defendants did not appear or respond to the complaint, Dubey was granted a default judgment after providing proof of her allegations and damages to the court.

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