Phil Hellmuth's Sponsor Bitcoin Latinum Faces Securities Fraud Lawsuit

Bitcoin Latinum, the sponsor of Phil Hellmuth, is facing a lawsuit over allegations of securities fraud. A lawsuit was filed against Bitcoin Latinum corporate entity GIBF GP, Inc., as well as founder Donald Basile and 10 co-defendants. The lawsuit was brought by Arshad Assofi who alleges that he was defrauded of $15 million through false claims made by Basile and Bitcoin Latinum.

The lawsuit was filed at the U.S. District Court for the Central District of California. The allegations include unregistered sale of securities in violation of both California law and the Securities Exchange Act as well as various frauds. Assofi also accuses Donald Basile of making unsupported claims, breaking promises, and using company money for personal use.

Basile allegedly told Assofi that there would be a $50 million investment from large companies and $100 million from a Dubai-based investor. He is also said to have claimed that Bitcoin Latinum is the only insured cryptocurrency and fully insured by Marshall McKellan. This is the second lawsuit aimed at Bitcoin Latinum to be filed this year. Back in February, The fledgling cryptocurrency also faced accusations of fraud in a Michigan court leading to a 95% fall in value amid talk of investment funds being “diverted and misappropriated for personal use.” A statement released denied all claims and informed the plaintiffs that they would be countersued for more than $1 billion each. It is the official stance of Bitcoin Latinum that the accusations are without merit.