vendredi, novembre 22, 2024

Michael Kassan’s Son Faces Dismissed Federal Lawsuit Over $800,000 Crypto Transfers Le Fils de Michael Kassan, fondateur de MediaLink, visé par un procès fédéral.

Le fils de Michael Kassan, fondateur de Medialink, a récemment été accusé dans une affaire fédérale concernant des transactions de cryptomonnaie réalisées avant la faillite de la société Voyager Digital Holdings. Cette poursuite, qui réclamait près de 800 000 dollars, a été abandonnée cette semaine. L’affaire a mis en lumière le rôle d’Alexander, sans indiquer qu’il avait commis une faute. Parallèlement, Michael Kassan est en proie à des poursuites juridiques en raison de problèmes financiers complexes avec l’agence United Talent Agency.

Alexander Kassan, son of Medialink founder Michael Kassan, faced a federal lawsuit concerning a series of cryptocurrency transactions made before the bankruptcy of a company linked to his father’s legal troubles. This lawsuit has been dismissed, as reported.

Voyager Digital Holdings, a cryptocurrency platform that declared bankruptcy in 2022, initiated legal action against Alexander, seeking nearly $800,000 in returns.

The lawsuit detailed that, “Voyager was a cryptocurrency brokerage platform enabling customers to buy, sell, trade, and manage over 100 different cryptocurrencies.”

According to accusations from the Federal Trade Commission (FTC), Voyager misled consumers by assuring them that their funds would remain secure. Consumers found themselves locked out of their accounts after the company’s collapse, as noted in an FTC press release.

In October 2023, a settlement was reached between Voyager and the FTC, leading to a permanent ban on Voyager from managing consumer assets.

Within the bankruptcy proceedings, the appointed administrator responsible for settling Voyager’s debts and creditors filed a lawsuit against Alexander Kassan, alongside almost a hundred other similar cases involving Voyager customers. Importantly, there was no indication of wrongdoing on Alexander’s part.

Before Voyager’s bankruptcy declaration, it was claimed by the administrator that Alexander had « conducted numerous withdrawals and/or sales of cryptocurrency from his customer account with [Voyager].”

The complaint stated, “During the Preference Period, Voyager transferred an aggregate amount of at least $798,383.97 to the Defendant, in fulfillment of the Withdrawals owed to the Defendant.”

The legal documents elaborated, “On May 17, 2024, Plaintiff, represented by counsel, issued a demand letter (the ‘Demand Letter’) to the Defendant, requesting the return of the Avoidable Transfers or evidence supporting any defenses the Defendant claims exclude these Transfers from the Plaintiff’s recovery. The Demand Letter also outlined potential deposits or cryptocurrency purchases that could represent new value under Section 547(c) of the Bankruptcy Code, subsequently reducing the net amount owed by the Defendant to the Plaintiff. Furthermore, the Demand Letter offered the Defendant a chance to settle the net preference exposure at a reduced rate prior to the Plaintiff instituting this preference action.”

On Thursday, October 31, the lawsuit was dismissed voluntarily.

Deborah Kovsky-App, attorney for Alexander and the other customers involved, stated, “This issue has been entirely resolved, leading to the dismissal of the lawsuit. Preference actions are standard in most bankruptcy cases, allowing trustees to reclaim any transfers made by a debtor to creditors within 90 days leading up to bankruptcy, redistributing the assets accordingly. A preference lawsuit doesn’t imply wrongdoing from creditors; it’s merely part of the Bankruptcy Code’s redistributive function.”

She further clarified, “The preference action Alex received, which has now been dismissed, is similar in nature to the over 100 preference claims filed and dismissed in Voyager as well as the 2,400 like claims initiated in the Celsius case.”

Michael Kassan, Alexander’s father, has a lengthy history of legal complications, which includes an ongoing dispute with the United Talent Agency (UTA). A prominent media executive, Michael has mingled with notable personalities such as Lizzo, Mariah Carey, Paris Hilton, Sting, and John Legend.

In 2021, UTA acquired Michael’s company MediaLink for $125 million, with plans for him to retain a senior role. However, relationships soured quickly. Michael filed a lawsuit alleging he was misrepresented regarding his responsibilities and entitlements. UTA countered by alleging that Michael utilized company funds for “clearly improper personal expenses.”

The legal skirmish has persisted for years, with Michael recently amending a lawsuit against UTA for embezzlement.

Sanford Michelman, Michael’s attorney, mentioned regarding the amended lawsuit, “Jeremy Zimmer [UTA’s CEO] deceitfully enticed Michael Kassan into selling MediaLink. After Zimmer and UTA breached their contract, Michael chose to resign, forfeiting a $10 million payout to pursue competition.”

Sanford continued, “Michael has subsequently claimed that UTA embezzled $300,000 from him and has initiated another suit against the agency.”

UTA’s attorney, Bryan Freedman, responded, stating, “Kassan’s feeble attempts to revise the narrative surrounding these events are pathetic. As mentioned numerous times in the filings, Kassan personally misappropriated a significant amount of money that he recognized belonged to

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