MoonPay Backers Duped Early Investor Before Financing, Suit Says

An early supporter of cryptocurrency payment processor MoonPay Inc. sued its backers for $10 million in Delaware, claiming HODL Venture Capital duped him into selling his stake for a pittance as part of a scheme to “clear out” small partners before a $555 million series A financing round.

The lawsuit, filed Tuesday in Delaware Chancery Court, targets three HODL principals, including two with senior roles at MoonPay, a startup “incubated” by the venture capital firm that’s now allegedly worth $3.4 billion. It was filed by Steven Greenfield, who invested $50,000 in HODL in 2019.

MoonPay isn’t named as a defendant. ...