Fund Manager Sues a Los Angeles Resident Over Lost Funds

According to a report by The Block, fund manager and co-founder of hedge fund Syncracy Capital, Daniel Cheung, has filed a lawsuit claiming he was defrauded of about $1 million.

Cheung claims in a case filed in the Western Division of the U.S. District Court for Central California that Sean Full, a resident of Los Angeles, stole money from him in order to invest in cryptocurrencies and projects involving decentralized finance but never gave it back. Cheung claims he made numerous attempts to get his money back but was unsuccessful.

The fund manager asserts that Full was designed to create an investment portfolio and provide Cheung authority over the money. Additionally, Cheung claims that Full put his money into a “unspecified, and presumably unregistered, ‘delta neutral yielding farming’ fund” without his permission.

Fund Manager Lost More than $2M

Additionally, the lawsuit claims that after sending Full nearly $1 million, Cheung lost “likely” more than $2.7 million. 

Notably, Bloomberg reported in May 2022 that the hedge fund was recreated by Ryan Watkins and Daniel Cheung. The partnership received $85 million in funding from Bain Capital and ParaFi. Union Square Ventures co-founder Brad Burnham, Josh Harris, co-founder of Apollo Global Management, and Multicoin are also involved.

Moreover, Dashjr, one of the most experienced professionals in the cryptocurrency business, came to social media at the beginning of this year to ask for assistance with what appeared to be illegal behavior by an anonymous attacker.

NFT influencer “Alex” also claimed to have lost “a life-changing amount” of his total assets in non-fungible tokens (NFTs) and cryptocurrencies after accidently downloading malicious software that was found through a Google Ad search result. 

Nikhil Gopalani, the COO of RTFKT, also recently dealt with the theft of a non-fungible token (NFT). The businessman acknowledged on Twitter that a phishing attempt cost him a sizable portion of the money in his digital wallet.