Alex Saunders, a popular cryptocurrency influencer and the founder of the YouTube channel, Nugget’s News, has been ordered by an Australian court to pay $370,000 to one of his YouTube subscribers for a scam in crypto investment deals.
How it Happened
Ziv Himmelfarb, a New Zealand subscriber of Nugget’s New, claimed that Saunders tricked him into investing in some crypto schemes that never paid off as expected.
He said that the YouTuber, via Facebook messenger, presented a number of crypto funds and developments that he should invest in to which he did. Himmelfarb claimed to have invested in the crypto influencer’s “forthcoming” stable coin project as well.
He also allegedly borrowed Saunders some of the ether (ETH) he had after the YouTuber reached out to him for help with “Liquidity Issues.”
All in all, Himmelfarb claimed to have given $249K worth of bitcoin and $107K worth of ETH to Saunders.
The transaction, which was divided into three facets, was said to have occurred between February and May 2021.
Alex Saunders allegedly and failed to fulfill his promise of providing Himmelfarb with a “more traditional investment product” and also did not pay back the loaned ethers.
Seeing this as a breach of their investment contract, Himmelfarb in August, went to Australia’s Victorian Supreme Court and filed a formal written order against Saunders, requesting that the YouTuber pay him AU$479,270 (US$353,000) to serve as compensation for his losses. He reportedly filed a civil action in August as well, but Saunders did not respond.
In October, two months after the order, the court ruled that Saunders must pay Himmelfarb AU$492,000 (approximately $370,000) to cover the “losses, interests, and costs” of the victim. Himmelfarb could also file for Saunders’ bankruptcy if he fails to pay within 21 days of the ruling.
The development – the successful suing of a crypto influencer – has opened a new record as the first of its kind to happen in Australia.
Meanwhile, in another development, Coinfomania reported earlier this year that Allan Flynn, a cryptocurrency exchange operator, sued popular Australian banks ANZ and Westpac for illegally shutting down his accounts.
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