Curious Case of Bitcoin Investor Who Bought 200 BTC in 2011 for $3,000 (Now Worth $2 Million)
In Srinvasan v. Kenna, 2019 U.S. Dist. LEXIS 119253 (N.D.Cal., 7/17/2019), the Plaintiff generally alleged that he purchased bitcoin through an exchange, and he requested the return of the bitcoin in 2013, but the exchange did not respond.
By 2017, he recalled the bitcoin and its increase in value, but the exchange went out of business in 2013 and he had not been given notice of the closure.
He raised these allegations under a single count for conversion. The Court dismissed Plaintiff’s complaint and the amended several times. By the second amended complaint, the court dismissed it with prejudice – meaning he cannot refile.
The Court dismissed the second amended complaint and stated in its order
“Plaintiffs miss the point entirely. It is beside the point that Plaintiffs did not name Tradehill as a defendant. Indeed, Plaintiffs must plead alter ego because they brought suit against Tradehill’s CEO, rather than Tradehill itself. And they cannot handwave the alter ego requirements — which this Court plainly stated were necessary in its dismissal order — by stating that they are pleading conversion against Kenna himself, without having pled any facts attributable to Kenna other than acts purportedly performed by him as CEO of Tradehill.”