Magnusson has represented special purpose companies Envst United Action, KTZL Action Group, MNTHR Action Group, and more than 2000 international and local investors in their fraud claims against three crowdfunding platforms before a court in Estonia.
According to Magnuson, “at the beginning of 2020, several Estonia-based crowdfunding platforms (Envestio.com, Kuetzal.com, and Monethera.com), ceased operations and went under after having attracted millions of euros for fraudulent investment projects.” The total value of the alleged fraud is estimated at EUR 15 million. The firm reported that the claimants organized a crowdfunding campaign which raised EUR 200,000, which will be used to finance the lawsuit against entities responsible for the fraud.
In addition, Magnuson reported that, “although the platforms are registered in Estonia, the roots of the crowdfunding fraud lead back to Latvia and investigation of the case has revealed several well-known Latvian businessmen to be amongst the actual beneficiaries of the large-scale scam.”
“Envestio was registered in Estonia and the bankruptcy proceedings are handled in Estonian court, but the entities we needed to sue were operating in Latvia,” commented Magnusson Partner Denis Piskunov, who is the lead attorney on the case. “By the end of January, we managed to get the Latvian court to arrest the properties of the two main debtors."
