Internet tech support and consulting player KDH Consulting Grouping recently filed an official complaint against crypto investment management firm Iterative Capital Direction for declared fraud and misdirection.

Accusations include "fraud and breach of fiduciary duties, amongst other things," the April 27 filling stated.

Iterative Capital allegedly lied

Iterative Capital allegedly falsely boasted of previous crypto investment and trading success and liquidity related to a "hedge fund-similar" account, which they urged KDH to join.

Instead of using the capital as stated, for crypto investment and trading turn a profit, the filing accuses Iterative Majuscule of taking the avails appropriated to the account and treating them as private savings, spending on crypto on mining endeavors and over-the-counter, or OTC, trading.

The actions date dorsum to 2022

The allegedly fraudulent firm attracted KDH dorsum in the latter half of 2022. Christopher Dannen, Interative Capital'due south co-founder, recapped ii previously fruitful accounts, proposing "a highly liquid new fund with quarterly withdrawal rights focusing primarily on trading cryptocurrencies and network tokens," the filing explained.

Iterative Uppercase, however, allegedly knew crypto trading was on its way out during its button for KDH'due south capital in December 2022, and prepared to put the money toward mining without disclosure.

"Moreover, Private Defendants failed to mention that, for the same very reason, they returned funds to investors from the previous fund," the filing read. "To the contrary, they praised their prior success and concealed truthful performance history and investment intentions."

KDH put $1,000,000 into the fund, attaining express partner status in the procedure. In the years following, Interative Majuscule allegedly dodged investors and contradistinct plans without returning capital, bleeding value in the processes.

Over the past ii years, a number of legal disputes have surfaced stemming from 2022 activities, showing the industry'due south transition out of its Wild West period.

Cointelegraph reached out to defendant Christopher Dannen for additional details, but received no response as of press fourth dimension. This article will be updated accordingly should a response come in.