The success of cryptocurrencies has caused a large number of influencers to emerge, even though they have little knowledge about the financial market. This was the case of Australian influencer Alex Saunders, sued by Ziv Himmelfarb after sending the equivalent of 1.9 million reais in bitcoin and ethereum to Saunders.
The influencer said he lost all of the follower’s money trading in cryptocurrencies, the court gave cause to the accuser, as Saunders didn’t even make a point of presenting a defense.
This is the first time an influencer has been forced to pay a follower, and it can serve as a basis in subsequent cases, especially on the same case as he left more than a hundred people at a loss.
Trust no one
This is one of the best known phrases in the world of cryptocurrencies. And it would have saved a lot of headaches for the victim who now expects to be paid by the influencer.
According to an Australian newspaper report The Age, Himmelfarb carried out three transactions, the first for around 270,000 Australian dollars in bitcoin, the second for 65,000, also in bitcoin, and the third for 144,000 in ethereum. Resulting in an equivalent amount of 1.9 million reais.
The money in question would be used to invest in two products. The first would be a cryptocurrency trading fund and the second in the development of an unreleased currency. The conversation and shipments took place between February and May this year.
As the investor never saw the color of his money again, he took the case to court, alleging that the influencer was not allowed to raise funds to manage investments.
The winning victim of the lawsuit says the court forced Saunders to return the investor’s money, plus interest and legal costs. The sum exceeds the equivalent of 2 million reais at the current price.
“[…]Alex has 21 days to pay me, if he doesn’t pay I can file for bankruptcy.”
Following that I’ve obtained a bankruptcy notice, giving Alex 21 days to pay, failing which I can rely on the failure as grounds for a creditor’s bankruptcy petition.
Hopefully it doesn’t come to it.
— Steve (@SuperKiwiana) October 15, 2021
As reported by Australian Financial Review, more than a hundred other investors fell in the same coup, totaling an amount higher than 50 million reais. In addition, victims report that Saunders had a good reputation in the country, operating in the market since 2017.
In addition, Saunders also sold 100 NFTs for 1 ETH each in November of last year, another occasion that left investors at a loss. It is worth mentioning that Saunders would receive, in addition to the initial money, 50% of each subsequent sale of these NFTs.
Soon after the case was opened, both Saunders’ personal account and the one managed by him, focused on market news, stopped being updated on all social networks such as Twitter, where it had the sum of more than 150,000 followers.
Cases of influencers who use their fame to get money are already quite common. Last month, the chairman of the UK’s Financial Conduct Authority (FCA) issued a warning to Kim Kardashian for promoting a suspicious cryptocurrency, the price of which sank after a rapid rise.
The difference in this case from Australia is that it was the first in the country to sue an influencer, paving the way for the same to be done with others in the future. As it is a new market, many take advantage of people’s ingenuity.
Because of this, always do your own research and don’t buy cryptocurrencies just because they were referred by someone with multiple followers.