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Investors filed a lawsuit against Bitwise Asset Management, accusing it of fraud and implementing a "pump and dump" scheme through the Bitwise 10 Crypto Index Fund (BITW) product. The plaintiffs demanded $2 million from the company.
The lawsuit was filed by Vandelay Industries, a firm representing the Mukamal family. The plaintiffs allege that Bitwise's top executives-CEO Hunter Horsley, company president Teddy Fusaro, and investment director Matt Hougan-organized a pump-and-dump scheme and misled investors. The Mukamal family also accused Bitwise of reckless and self-serving asset management, violating signed agreements and changing the investment structure without the consent of investors.
The complaint states that in early 2018, the Mukamal family invested about $1.3 million in the private index fund Bitwise HOLD 10 Private Index Fund. In 2020, Bitwise proposed to move the fund from a private fund to a public organization on OTC markets. At the same time, asset management fees increased by 25%.
Investor Theodore Mukamal explained that these changes were imposed on them during the market downturn caused by the COVID-19 pandemic, which significantly limited their opportunities. The lawsuit also mentions investments totaling $4.85 million in 2021 under new terms, which Bitwise executives could also distort. Mukamal emphasized that over the past three years, the flagship product of the Bitwise 10 Crypto Index Fund (BITW) has traded 35-65% below Net asset value (NAV). Due to the company's actions, investors suffered losses of more than $2 million. The plaintiffs demanded this amount from Bitwise as compensation for damages.
The lawsuit was filed by Vandelay Industries, a firm representing the Mukamal family. The plaintiffs allege that Bitwise's top executives-CEO Hunter Horsley, company president Teddy Fusaro, and investment director Matt Hougan-organized a pump-and-dump scheme and misled investors. The Mukamal family also accused Bitwise of reckless and self-serving asset management, violating signed agreements and changing the investment structure without the consent of investors.
The complaint states that in early 2018, the Mukamal family invested about $1.3 million in the private index fund Bitwise HOLD 10 Private Index Fund. In 2020, Bitwise proposed to move the fund from a private fund to a public organization on OTC markets. At the same time, asset management fees increased by 25%.
Investor Theodore Mukamal explained that these changes were imposed on them during the market downturn caused by the COVID-19 pandemic, which significantly limited their opportunities. The lawsuit also mentions investments totaling $4.85 million in 2021 under new terms, which Bitwise executives could also distort. Mukamal emphasized that over the past three years, the flagship product of the Bitwise 10 Crypto Index Fund (BITW) has traded 35-65% below Net asset value (NAV). Due to the company's actions, investors suffered losses of more than $2 million. The plaintiffs demanded this amount from Bitwise as compensation for damages.
