In addition to the difficult phases that crypto users may experience, they are also victims of many cases of scams. Obviously, anyone can be fooled, even the people who are supposed to be the most informed. This is the case of Daniel Cheung, the co-founder of Syncracy Capital. It is a hedge fund that makes investments along the crypto value chain. What happened ?
A fraud case submitted to the competent courts
Daniel Cheung, the co-founder of Syncracy Capital, filed a complaint against Sean Full, a businessman residing in Los Angeles for fraud. The lawsuit was filed in the District Court for the Western Division of Central California. In the complaint report, Daniel Cheung explains that he personally paid $1 million to Sean Full, who had pledged to invest the funds in cryptos and decentralized finance (DeFi).
Under the other terms of the deal, Sean Full was to create an investment portfolio over which Daniel Cheung would have control. But instead, Sean Full allegedly invested the money in “an unspecified, and presumably unregistered fund”, named Delta Neutral Yielding Farming. This, without the consent of his partner.
Moreover, Daniel Cheung claims to have tried for several months to recover the funds, but never succeeded. He added that the losses incurred are likely to be more than $2.7 million.
On social networks, this scam case amuses some members of the crypto community, who wonder how a fund manager can be fooled so stupidly. For others, Daniel Cheung’s scam is proof that no one is safe from a more or less well-crafted scam.
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