Stefanos Papanastasiou, a 39-year-old cryptocurrency trader who claimed to have developed an algorithm that could result in immense profit through crypto trading, is currently facing a lawsuit filed by Savvas “Sam” Alexiadis, a property developer.
Other investors are also set to file charges due to their loss of over $20 million which was allegedly invested with Papanastasiou, reports The age on March 19, 2019.
Cryptocurrency Trader Faces Lawsuit
Per the report, Stefanos Papanastasiou, also known as Stefan Papas, is currently facing a lawsuit in the Supreme Court of Victoria, Australia after his former clients alleged that he had traded bitcoin (BTC) and ether (ETH) on their behalf which resulted in a loss of over $20 million.
Papanastasiou, prior to this time, had notified his clients who are prominent businessmen and lawyers that $500,000 was spent to develop an algorithm that could reduce the price volatility of cryptocurrencies and generate huge profits when trading crypto.
One such investor is Savvas “Sam” Alexiadis who claimed in legal documents that between July and November 2017, he had transferred $2.1 million into the digital wallets pre-selected and managed by the accused.
The court document also points to some messages which Stefan Papas had sent to the plaintiff.
Among them, is a message dated July 15, 2017, which guarantees that one can either make a “head start, a huge break or hit the jackpot” through Stefan Papas’ trading solution. Another message stated that Mr. Alexiadis didn’t have to do anything to earn high returns, and all that was required was access to his ACX trading account which would be used by the accused to trade on his behalf.
“Sam, the numbers are staggering, seemingly unequivocally within reach. This transition in history, is like no other before it,” Stefan Papas purportedly said.
The plaintiff’s legal team, on the other hand, argued that the accused refused to provide any evidence of such trades and also ignored their request to refund the $2,743,116 which had been paid.
Accused Drug Dealer Gets Scammed
Further reports reveal that Mark “Bomber” Thompson, an accused trafficker of ecstasy and methamphetamine, was also one of Papas’ clients. However, there has been no confirmation if Papas had any dealings with Mr. Thompson in relation to the drugs crime.
Mr. Thompson claims that he had also invested over $1 million with Stefan Papas during the cryptocurrency moonshot of 2017.
Accordingly, the cryptocurrency trader has a Supreme Court action against him and one of the defendants that have been named, is his former wife, Shalini Ganapathy who is yet to file a defense to dispute the claims that have been made.
Ms. Ganapathy was separated from Mr. Papanastasiou in July 2018, and while the media made attempts to reach her through a phone call, all efforts proved futile.
The fashion blogger also denied having any knowledge of her former husband’s cryptocurrency business.
More investigation into the matter reveals that the divorced couple in December 2017 had bought a house valued at $5.44 million in South Yarra, an inner suburb of Melbourne, Australia.
Nevertheless, these allegations may be the least of Mr. Papanastasiou’s worries since he is also accused of instructing Mr. Alexiadis to transfer money to other parties in return for supplying the plaintiff with their cryptocurrency equivalent.
The instruction was to send $40,000, $35,000, and $450,000 respectively, to his wife, his sister, and OzMattress, a mattress supplier in Thomastown which was founded by the accused. That being the case, it could earn the attention of corporate regulators and the Australian Tax Office.
In related news, on January 9, 2019, BTCManager informed that Wong Ching-kit, a Hong Kong-based cryptocurrency entrepreneur had been accused of scamming investors HK$3 million (~$382,000) in a cryptocurrency mining scheme.