Digital Currency Group (DCG) has sued its lending subsidiary Genesis, asking a bankruptcy court to confirm it is owed more than $105 million plus interest on a financial backstop extended during the 2022 crypto downturn.

The case, filed on Aug. 14 in the U.S. Bankruptcy Court for the Southern District of New York, centers on a $1.1 billion promissory note DCG issued to Genesis after the implosion of hedge fund Three Arrows Capital (3AC).

According to the complaint, 3AC, one of Genesis’s largest borrowers, defaulted on a $2.36 billion margin call in mid-2022, creating a significant deficit in Genesis Asia Pacific’s equity, a DCG-owned entity.

DCG said it injected the note “voluntarily” to stabilize the business, but argued that when crypto markets rebounded, Genesis profited from collateral tied to 3AC far beyond the note’s original value. Those gains, it contends, reduced the principal balance and now leave $105 million outstanding.

In a statement, DCG said it “took extraordinary efforts” to keep Genesis afloat in 2022 and simply wants the court to “confirm” repayment status.

The filing adds another dispute to the strained relationship between the two companies. Earlier this year, Genesis’s litigation oversight committee sued DCG, its CEO Barry Silbert, and other executives, alleging that billions of dollars were wrongfully taken from the lender in 2022.

Genesis, one of several high-profile firms to collapse in the wake of the FTX bankruptcy, halted lending in late 2022 and filed for Chapter 11 protection in early 2023.

It emerged from restructuring last year and began distributing roughly $4 billion to creditors, with recovery amounts varying by asset type. As an equity holder, DCG is among the last to be repaid and has challenged parts of the bankruptcy plan.

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Crypto exchange Coinbase has sued an alleged cybersquatter over the domain coinbase.de, which it says has been used to redirect users to an app used to trade physical coins and to potentially extort the exchange into buying it. 

Coinbase sued Tobias Honscha from Isernhagen, Germany, in a California federal court on Thursday, claiming he is squatting on the domain coinbase​.de to use for different purposes, including redirecting visitors to his app for trading physical coins and making money as a Coinbase affiliate. 

“Coinbase recently became aware that Honscha is using and trafficking in the domain coinbase​.de in bad faith to capitalize on the goodwill that Coinbase has developed in the Coinbase name over the past decade and more,” the exchange said in a lawsuit. 

Cybersquatting, or domain squatting, involves buying a web domain name similar to an existing well-known brand. Phishing scammers often use the practice to trick unwitting users, while some domain owners will try to sell the domain to the trademark holder for a profit.

URL broke Coinbase affiliate agreement, exchange claims

Coinbase claimed Honscha had, at one time, used the domain name to host his affiliate link to the crypto exchange, fetching rewards for those who sign up through it.

The company said this violated its affiliate agreement, which says an affiliate link can’t “masquerade as being the same as Coinbase” or use the words “Coinbase or Coin Base” in domain names. 

“Honscha violated the terms of the Affiliate Agreement by using the coinbase​.de domain, which fully incorporates the COINBASE trademark and gives the impression that Honscha is one in the same with Coinbase,” the complaint read. 

Coinbase claims pressure to buy domain at “inflated price”

The exchange accused Honscha of attempting “to profit from the domain by threatening potential fraud or cybercrimes unless Coinbase pays an inflated price.”

Coinbase claimed that in conversations with Honscha, he noted the “‘risks of a phishing attack via the Coinbase email account’” along with “‘unsolicited submission of ID documents, passwords, and one-time 2FA codes’ if Coinbase were to not purchase the domain from Honscha.”

“This is a clear attempt to hold Coinbase hostage by threatening to offload it to a buyer who would weaponize it even more,” the company said. 

Coinbase says domain used for other means, including email

Coinbase claimed that after it told Honscha to stop using the domain to host his affiliate link, the site was then used to redirect visitors to a mobile app for trading physical coins.

The company also accused Honscha of “operating an email service through the @coinbase​.de email account,” which would allow him to communicate with and get sensitive information from “individuals who may mistakenly believe they are communicating with Coinbase.”

Related: Dragonfly to ‘vigorously defend’ itself against DOJ scrutiny over Tornado Cash investment

“These mistaken emails have and will continue to occur,” Coinbase wrote in the complaint. “The public may very well expect that a company’s corporate or product website can be found at a domain name that consists of or includes that company’s name or trademark or variations thereof.”

At the time of writing, the domain redirected to a forum for discussing physical coins, which listed Honscha as a “responsible person” for the site. An email listed on the site did not immediately return a request for comment.

Coinbase has asked the court to grant it damages and profits from Honscha’s alleged misuse of the domain, to stop him from using it, and to possibly transfer the domain to Coinbase.

The company is also seeking damages over Honscha’s alleged breach of the affiliate contract, including commissions he might have received through the domain.

Magazine: Coinbase hack shows the law probably won’t protect you — Here’s why

]]> https://earlybirdsinvest.com/coinbase-sues-man-using-a-coinbase-like-url-to-make-money/feed/ 0 50058 https://earlybirdsinvest.com/nightmare-bank-of-america-sues-customers-after-prematurely-discharging-loan-report/ https://earlybirdsinvest.com/nightmare-bank-of-america-sues-customers-after-prematurely-discharging-loan-report/#respond Thu, 26 Jun 2025 11:37:26 +0000 https://earlybirdsinvest.com/nightmare-bank-of-america-sues-customers-after-prematurely-discharging-loan-report/

The Bank of America reportedly made a mistake with a customer’s loan and ended up suing her because of it.

Diane Jaques, a 75-year-old homeowner in Concord, Massachusetts, was sued by the Bank of America after the financial institution accidentally discharged her loan prematurely, reports local Boston public news outlet WBUR.

“It’s ridiculous. It’s their mistake…

I’ve never missed a payment. I get the bill every month and I pay it.”

According to the lawsuit, she and her husband originally took out a $200,000 home equity line of credit from FleetBoston Financial, which later merged with Bank of America. Her husband has since died.

After the merger, Bank of America says it took steps to clean up FleetBoston’s paperwork on some 16,000 mortgages. However, in the process, Bank of America erroneously discharged Jaques’ mortgage, among others.

To correct the error, the bank asked Jaques to sign certain documents. Jaques says the process became such a hassle, including having to get papers notarized by a notary public, that she gave up on it, only to later learn Bank of America was now suing her over the matter.

Jacques, a semi-retired insurance agent, says,

“How can this even be allowed? It’s very shocking. It’s the last thing I need.”

In the end, Bank of America dropped the lawsuit this month after Jaques signed the necessary documents.

Says Jaques,

“I am done with Bank of America. This has been a nightmare.”

Bill Halldin, a Bank of America spokesperson, says that the bank contacted customers for permission to refile the mortgage paperwork to fix the loans mistakenly discharged. If homeowners didn’t respond or did not complete the process, the bank sued. Jaques is one of more than 100 homeowners in Massachusetts who were sued over the loan issue.

Says Halldin,

“Filing the lawsuits was the only way to ask the court to correct the record if homeowners didn’t voluntarily agree to the correction.”

According to Halldin, the bank will cover the cost of correcting the records with local registries as well as public notary services. However, the bank does not plan to reimburse attorney’s fees incurred by homeowners who hire a lawyer to handle the lawsuit.

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Editor’s take: Multiplayer gaming is about fair fights, not shortcuts. But cheaters keep buying their wins, ruining it for everyone else. Epic Games is cracking down hard because cheating isn’t just unfair – it’s a threat to the whole game. Sorry, losers. Cheating doesn’t pay.

Epic Games recently announced a new lawsuit targeting developers of Fortnite cheating tools. The company is going after an individual who created software that lets players see through walls and use auto-aim. Epic shared the update on its ongoing battle via X, emphasizing that creating and distributing cheats violates the game’s terms of service and must be stopped.

Epic filed the lawsuit in its home state of North Carolina against Ediz Atas. Known online as “Sincey Cheats” and “Vanta Cheats,” Atas has developed, maintained, and sold Fortnite cheating software since January 2023. Epic said his products gave players an unfair advantage and breached Fortnite’s end-user license agreement. Epic is seeking damages from Atas and his partners, along with attorney’s fees and other legal costs.

An update on our fight against cheating in Fortnite

We filed a new lawsuit against an individual who developed and sold cheating software that helped players see through walls and auto aim. We’re also going after people who helped sell this software.

Creating and selling…

– Epic Games Newsroom (@EpicNewsroom) June 10, 2025

The company claims that the cheating software bypasses its anti-cheat system and undermines Fortnite’s long-term business. Honest players forced to compete against cheaters are more likely to stop playing and buying in-game content, causing damages and losses to the company.

Atas went to extreme lengths to profit from his cheating business. He even tried to block Epic’s efforts to remove videos promoting the software, posing as an Epic representative in emails to YouTube in an attempt to reverse DMCA takedown requests. According to the lawsuit, his actions forced Epic to issue tens of thousands of Fortnite bans since 2022 – over 15,000 of them in the US alone.

Atas didn’t act alone. According to the lawsuit, at least five partners helped manage the business, selling Sincey Cheats and Vanta Cheats software to Fortnite players through various websites and encrypted messaging platforms like Discord and Telegram.

Epic has recently intensified its legal fight against Fortnite cheaters, pursuing not just software developers but also esports players caught using cheats. The company has forced some players to publicly apologize and return prize money, sending a clear message: cheaters don’t get paid – at least not when Epic is involved.

Why it matters: A Kansas woman is suing several porn sites after her 14-year-old son found an old laptop and used it to browse adult content. The suits claim that the sites violated the state’s age-verification laws by allowing the minor access.

Kansas is one of the 20+ states that have current or upcoming laws requiring porn sites to verify users’ ages.

The Kansas law requires any site with over 25% of its content deemed “harmful to minors,” which covers nudity and sexual content, to verify the age of visitors using a commercially available database or another commercially reasonable method of age and identity verification.

As reported by 404 Media, the National Center on Sexual Exploitation (NCOSE) and a Kansas law firm filed four lawsuits on behalf of a minor child, the child’s mother, and a friend of the family against Chaturbate, Jerkmate, Titan Websites, and Techpump Solutions, also known as Superporn.com.

According to a statement from NCOSE, the mother had been diligent in monitoring her 14-year-old son’s devices to prevent his exposure to harmful material during “this important developmental stage of his life.”

In August 2024, the boy found an old laptop belonging to a friend of his mother that had been stored and forgotten about in a closet. It was still in working order, and the son used it to access the internet and search for hardcore pornography.

The suits allege that the sites should have had age-verification measures in place to comply with a Kansas law implemented in July 2024, which allows individuals – including parents or guardians – to take legal action against commercial entities, such as websites, that permit access without verifying users’ ages.

Chaturbate has an age-verification mechanism, but it can be easily manipulated and that does not satisfy Kansas’ law, according to the suit. Its parent company, Multi Media LLC, called the suit “completely baseless,” something it told the plaintiff when the company was contacted last November.

The complaint claims that as a result of accessing the sites, the boy has suffered “pain, suffering, disability, disfigurement, and mental anguish; psychological injury; past and future loss of enjoyment and pleasure of living; and past and future expenses of necessary medical care and treatment.”

The NCOSE says these are the first lawsuits in the US that challenge alleged violators of age verification laws. The organization has previously helped with lawsuits against porn site Xvideos. It also aided with a case against Twitter over allegations it violated the federal sex trafficking statute.

Two of the largest banks in the US are reportedly locked in a legal battle over a $481 million commercial property loan.

Wells Fargo is suing JPMorgan Chase, the largest back in the US, over accusations it greenlighted a real estate loan even though it allegedly knew that the financial statements were fraudulent, reports Reuters.

In 2019, JPMorgan issued a loan to real estate development and investment firm Chetrit Group to finance the purchase of 43 multi-family buildings with 8,671 apartments across 10 states.

Acting as the investors’ trustee, Wells Fargo alleges that JPMorgan and Chetrit knew that the sellers had fraudulently inflated the buildings’ historical net operating income by 25% even before closing the deal at $522 million.

A property’s historical net income is a financial metric that measures the income generated by a building over a specific time frame. A property’s past earnings are typically used to assess its potential value.

Wells Fargo claims that JPMorgan approved the overvalued property deal to reap millions of dollars in fees, thinking that the assets would eventually be dumped on investors who wouldn’t realize the buildings were not as profitable as declared on paper.

Chetrit’s loan turned sour in 2022 and, in the process, Wells Fargo says investors in the trust have lost tens of millions of dollars.

“[JPMorgan] had an obligation to engage in due inquiry to determine the scope of the fraudulent reporting. Instead, [JPMorgan] plowed ahead as if nothing unusual had happened without even bothering to correct known errors in the numbers.”

Wells Fargo is asking the court to order JPMorgan to either pay for damages or repurchase the loan and make the investors whole.

JPMorgan and Chetrit have not yet issued a statement regarding the case.

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The Trump organization just filed a lawsuit against US banking giant Capital One, accusing the lender of unjustly terminating more than 300 of the firm’s bank accounts.

The suit claims the closures were driven by political bias, targeting the Trump family’s conservative affiliations back in 2021.

“Plaintiffs have reason to believe that Capital One’s unilateral decision came about as a result of political and social motivations and Capital One’s unsubstantiated, “woke” beliefs that it needed to distance itself from President Trump and his conservative political views. In essence, Capital One “de-banked” Plaintiffs’ Accounts because Capital One believed that the political tide at the moment favored doing so.

In addition to the considerable financial harm that Plaintiffs and their affiliated entities suffered, Capital One’s reckless decision is part of a growing trend by financial institutions in the United States of America to cut off a consumer’s access to banking services if their political views contradict with those of the financial institution. Capital One’s conduct is but one example of a systemic, subversive industry practice that aims to coerce the public to shift and re-align their political views.”

The move comes after Trump openly slammed both Bank of America and JPMorgan Chase.

At a World Economic Forum session in January, Trump publicly criticized Bank of America CEO Brian Moynihan and JPMorgan Chase CEO Jamie Dimon.

He accused them of denying services to conservatives, urging them to “open your banks” to those who have allegedly been unfairly kicked out of the banking system.

Trump’s remarks touch on a broader debate over alleged discrimination in the financial sector.

This month, after meeting with Republican lawmakers, Chase’s Dimon said US banks sometimes “push people out of the system” due to vague federal anti-money laundering rules.

Dimon denied political or religious bias at Chase, instead blaming regulatory pressures that force compliance-driven account closures.

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