A U.S. court rejected a motion to dismiss the $440 million TradeAI crypto Ponzi scheme case.

PANews reported on March 24 that, according to Cryptopolitan, the U.S. District Court for the Southern District of New York rejected the motion to dismiss the case in the alleged $440 million TradeAI/Stakx Ponzi scheme lawsuit, and the case will proceed. The lawsuit, filed in 2024, accuses multiple individuals of operating a Ponzi scheme through NFTs and crypto investment pools, promising investors high returns through crypto strategies; current estimates of related losses exceed $20 million.

In his ruling, Judge Lewis Kaplan rejected all of the defendant's key objections regarding jurisdiction, place of trial, and service of process, noting that defendant Cyrus Abraham was already aware of the lawsuit and could not indefinitely delay with technical details. The court ordered Abraham to disclose his current address by March 31, or face default judgment and further sanctions. The court has extended the deadline for formal service of process to April 22 and allowed service of legal notice to the defendant via alternative methods such as Ethereum wallets, email, and social media. Some of the defendants in the case have connections to real estate and art projects in Dubai.