Crypto Phoenix Capital, Xeta Sued After Millions of Dollars Lost

Cryptocurrency sellers conducted a fraudulent scheme worth “tens of millions of dollars” by scamming investors on lies about media and governmental support before going dark, a lawsuit says.

Given Phoenix Community Capital and Xeta Capital LLC executives argued to investors that they weren’t selling securities, 25 plaintiffs are also suing under the Racketeer Influenced and Corrupt Organizations Act, said their attorney Gary Blackburn of The Blackburn Law Firm PLLC in a phone call.

The complaint, filed in the US District Court for the Middle District of Tennessee on Wednesday, comes as federal judges have been divided about whether crypto ...