• A federal judge is upholding a freeze on $35 million in crypto assets held by SpartacusDAO, a crypto investment project whose leader faces a lawsuit from disgruntled investors.
• The restraining order was issued to protect the funds until Wei Wu, the alleged leader of SpartacusDAO, starts working with the court.
• Patagon Management LLC is suing Wu for wronging investors by holding his own token redemption program that he front-ran for $4.3 million in profit.

Judge Upholds Freeze on SpartacusDAO’s $35M in Lawsuit

A federal judge has issued a restraining order to protect $35 million worth of cryptocurrency assets held by SpartacusDAO, a crypto investment project led by Wei Wu who is being sued by Patagon Management LLC. This ruling bars Wu from touching or using the funds until he begins working with the court.

Investors Unhappy With Progress of Crypto Yield Project

SPA investors have been unhappy with the progress of the crypto yield project and staged a vote last year to dissolve the decentralized autonomous organization and return its value to token holders. However, this vote did not occur on their traditional governance platform, so it was not considered binding and Spartacus pressed forward regardless.

Lawsuit Alleges Violations of Securities Laws

Patagon Management LLC has filed suit against Wei Wu for allegedly wronging investors through his own token redemption program which he used to front-run for $4.3 million in profit. The plaintiffs also allege violations of securities laws as well as shareholder obligations and fiduciary duties related to his actions as leader of SpartacusDAO.

Court Ordered Freeze Remains In Place Until Wu Works With Court

Judge Victor Marrero has upheld his previously signed restraining order against Wei Wu and stated that it will remain in place until he begins working with the court.

Investment Company Suing For Return Of Funds

Diogenes Casares, CEO of Patagon Management LLC claims that they are suing for damages in an attempt to recover funds wrongfully taken from SPA token holders as well as any other profits made from these illegal activities pertaining to the SPA tokens .

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