Phil Hellmuth’s dive into cryptocurrency appears to have backfired after a lawsuit alleging securities fraud landed on the door of Bitcoin Latinum and one among its essential gamers, poker participant Kevin Jonna…
Hellmuth, who famously missed out on $hundreds of thousands when he refused recommendation to put money into Bitcoin when its value was simply $90, has been a “paid endorser” of the Bitcoin Latinum cryptocurrency.
He sported the crypto-brand’s brand all through the latest World Sequence of Poker and has promoted its advantages in a spread of discussions, together with the next tweet.
I’m a paid endorser of Bitcoin Latinum, and that is NOT funding recommendation:https://t.co/5egXoqWPvr
— phil_hellmuth (@phil_hellmuth) July 31, 2021
Nevertheless, the lawsuit launched not too long ago by three buyers has resulted within the value of the coin falling by 95% for the reason that begin of the 12 months, amid claims of funding funds being “diverted and misappropriated for private use.”
A 40-page lawsuit has been filed in Michigan towards Kevin Jonna and Bitcoin Latinum, with buyers Farid Jamardov and two of Kevin Jonna’s cousins, Raymond Jonna and Simon Jonna, claiming they’ve by no means obtained the crypto tokens they paid for.
Jamardov claims within the submitting that he invested greater than $100,000 within the cryptocurrency, with Simon Jonna’s funding of $240,000, and Raymond Jonna’s $200,000, bringing the overall to greater than $540,000.
Bitcoin Latinum responded to the authorized motion by countersuing everybody concerned within the lawsuit for “not lower than $1billion every for reputational and punitive damages”.
A press launch acknowledged: “It’s the official stance of Bitcoin Latinum that the accusations are with out advantage. Bitcoin Latinum neither had a relationship with nor obtained any funding from the plaintiffs.”
It isn’t clear whether or not or not Hellmuth’s involvement goes past being a paid promoter of the coin. It has been reported elsewhere that the 16-time WSOP champ is listed as an “angel investor” in Bitcoin Latinum.
Hellmuth attended a launch get together for the cryptocurrency final 12 months, alongside along with his good friend and fellow professional, Brandon Cantu, and not too long ago MC’d a poker match that includes Bitcoin Latinum’s founder, Don Basile…
My man @TheDonBasile, CEO/Founding father of Bitcoin Latinum w @StephenCurry30 at @Warriors Charity poker tourney #POSITIVITY pic.twitter.com/ixPu57jt3i
— phil_hellmuth (@phil_hellmuth) February 6, 2022
As we reported final summer season, Hellmuth revealed his connections to the cryptocurrency in addition to his historical past of poor selections within the crypto-investment space.
Hellmuth advised USPoker’s Sean Chaffin: “I’ve been following crypto since my Silicon Valley ‘masters of the universe’ crew advised me to purchase Bitcoin at $90. “Then, they pushed it once more after it fell to $300.”
“Sadly,” says Phil, “I didn’t hear!” including that he additionally missed out on another main shares. “Additionally they advised me to purchase Apple, Tesla, and Amazon too – and I didn’t hear, oops.”
Fairly what Hellmuth’s preliminary connection to Bitcoin Latinum was, is unclear, however Kevin Jonna, who is called as a defendant within the lawsuit, has a poker historical past of his personal.
Jonna took down the WPT LA Poker Traditional Excessive Curler in 2014, for a $262,840 payday. Two 5 determine cashes from final 12 months on the Wynn in Las Vegas are his solely cashes within the intervening seven years.