Cryptocurrency Trader Clients Take Fund Manager to Court After Losing Millions

The founder of the Australian mattress retailer OzMattress and cryptocurrency fund manager, Stefanos Papanastasiou, has been brought to the court by clients after losing AUD$20 million – close to $14 million. The information was recently reported by The Age.

Australian Businessman Accused of Losing More than $20 Million

Stefanos Papanastasiou is currently being sued by property developer Savvas “Sam” Alexiadis claiming that Papanastasiou owes more than $2.7 million. Meanwhile, there are other clients that are also ready to launch civil action.

Papanastasiou is not the only defendant. His wife, Shalini Ganapathy, has also been accused of conducting fraudulent activities. However, none of them has yet filed a defence to the statement of claim.

Stefanos Papanastasiou informed that he spent half a million Australian dollars o develop an algorithm that delivers returns after trading Bitcoin (BTC) and Ethereum (ETH).

The documents have been filed with the Supreme Court of Victoria state. Alexaidis explains that he transferred $1.5 million into a trading account managed by Papanastasiou. At the same time, he stated that he sent BTC into wallets that were managed by Papanastasiou as well.

One of the messages sent by Papanastasiou reads as follows:

“Sam, don’t get caught up in the details. Leave it to me. Let me know password login for ACX [trading account]. I’ll deal with whatever funds are in there… Eyes on the prize Sam. Understood? Got your back.”

Papanastasiou did not comply with the requests made by the client and he did not provide information regarding the trading activity. Moreover, he did not comply with requests to repay the amounts asked by clients.

At the same time Mark Thompson, a former Australian Football League coach, has been accused of trafficking methamphetamine. He has also contributed over 1 million Australian dollars to Papanastasiou’s fund.

Australia is becoming very alert to these situations that are related to virtual currencies. The neighbouring country of New Zealand has been affected by a hack to one of the most popular digital currency exchanges in the country, Cryptopia. The exchange was hacked at the beginning of the year losing more than $2.4 million in Ethereum (ETH) and other digital assets.

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