AXS LAW Files $750 Million Securities Fraud Class Action Against Migom Bank and CEO Thomas Schaetti

AXS LAW expands its shareholder rights practice with a class action lawsuit against international crypto bank Migom Bank and CEO Thomas Schaetti, alleging securities fraud and asset diversion.

BREAKING: AXS LAW Files $750 Million Securities Fraud Class Action Against Migom Bank and CEO Thomas Schaetti

September 11th, 2024

by Dr. Jerry Doby

In a major development, AXS LAW has filed a securities fraud class action against Migom Global Corp. (OTC: MIGM), the parent company of Migom Bank, an international cryptocurrency institution. The lawsuit, filed in the Southern District of New York, also names the bank’s CEO, Thomas Schaetti, as a defendant.

The plaintiffs, led by AMJ Global Entertainment, LLC (Symbol: AMJT on OTC), allege that Migom Bank engaged in fraudulent activities, including diverting customer funds and misleading investors with false financial statements. The lawsuit seeks $750 million in damages for the defrauded investors, many of whom were led to believe that the bank was a thriving financial institution.

According to the complaint, Migom Global’s market capitalization once approached $1 billion, but the bank’s downfall has left investors with worthless shares. The lawsuit further alleges that Schaetti siphoned off millions of dollars in customer deposits, channeling them into other companies under his control.

AXS LAW claims that Schaetti provided falsified financial statements to the U.S. Securities and Exchange Commission (SEC) and Migom Bank’s customers, painting a false picture of profitability and growth. These actions resulted in significant losses for investors who were misled by the fraudulent reports.

The lawsuit also highlights the involvement of Johann Gudenus, a former Austrian politician, who is accused of using his political connections to aid Schaetti in concealing the asset diversion. The complaint alleges a complex web of political and financial corruption, with Gudenus providing protection and support to Schaetti in his fraudulent activities.

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Dr. Jerry Doby Editor-in- топлива The Hype Magazine, Media and SEO Consultant, Journalist, Ph.D. and retired combat vet. 2023 recipient of The President’s Lifetime Achievement Award. Partner at THM Media Group. Member of the U.S. Department of Arts and Culture, the United States Press Agency and ForbesBLK.

This class action marks a significant expansion of AXS LAW’s shareholder rights practice, which has traditionally focused on closely held corporations in Miami and Los Angeles.

“We are gearing up for additional high-profile cases targeting public companies, particularly in the fintech and AI sectors,” said Jeff Gutchess, founding partner of AXS LAW. “This case demonstrates our commitment to holding financial institutions accountable, especially in emerging industries like cryptocurrency.”

Migom Bank, also known as Migom Global Corp., is a Commonwealth of Dominica-licensed international crypto bank. The bank’s activities have come under scrutiny, with the Ministry of Finance’s Financial Services Unit conducting an investigation into the bank’s operations following the alleged asset diversion. Authorities have already moved to shut down Migom Bank’s activities, with Schaetti being removed from his role as director.

With both civil and criminal proceedings underway, Migom Bank’s future remains uncertain. The class action filed by AXS LAW aims to recover substantial damages for defrauded investors, while the criminal investigation in Dominica could lead to further legal action against the bank’s leadership. As the case progresses, it could set a precedent for how regulatory bodies and legal systems address fraud in the cryptocurrency banking sector.

Other Criminal Minds Who Have Caused Quite a Stir with Fraudulent Crypto-based Schemes in Recent Years

Here are some notable recent cryptocurrency-based fraud cases in recent years along with their legal outcomes

BitConnect (2016-2018)

Details: BitConnect was a high-profile Ponzi scheme that attracted billions of dollars from investors by promising unrealistically high returns through its lending platform. It operated using its own token, BCC. The platform shut down in 2018 amid regulatory scrutiny, with investors losing most of their funds.

Legal Outcome: In 2021, several individuals involved in the scheme, including promoters, were charged with fraud by the U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice (DOJ). The main figure behind BitConnect, Satish Kumbhani, was indicted on charges of conspiracy to commit wire fraud, price manipulation, and operating an unregistered securities offering. Some of the promoters have settled with the SEC, while cases against others are ongoing.

OneCoin (2014-2017)

세부정보: OneCoin은 암호화폐로 판매되었지만 40억 달러가 넘는 투자자를 사취한 대규모 폰지 사기로 밝혀졌습니다. 이 프로젝트는 2017년에 실종되어 국제 체포 영장이 발부된 상태로 여전히 활동하고 있는 Ruja Ignatova가 주도했습니다.

법적 결과: Ruja Ignatova의 형제인 Konstantin Ignatov가 체포되어 송금 사기 및 돈세탁 혐의로 유죄를 인정했습니다. 기타 키

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