Alex Foxen Embroiled in $500,000 Cryptocurrency Lawsuit

1 year ago
Alex Foxen Embroiled in $500,000 Cryptocurrency Lawsuit
10 Feb

Highstakes poker pro and GPI Player of the Year winner Alex Foxen has been named in a $500,000 lawsuit brought by South African pro Ronit Chamani against a cryptocurrency mining company.

Chamani alleges that she invested more than $200,000 in the Quasar Mining Group Inc, of which Foxen is a founding partner.

The two other defendants, besides the company, named in court documents are Paul Tyree and Nicholas Gubitosi, the latter a close friend of Foxen.

The scheme attracted close to $2million in investments from at least 17 investors, but was aborted in early 2019, leaving Chamani and others out of pocket.

The lawsuit, filed by Postlegate lawyer Mac Verstandig on behalf of Chamani, alleges that Tyree and Gubitosi are both guilty of ‘unjust enrichment, negligence and breach of fiduciary duty’ among other charges – the story first revealed by Haley Hintze on kickasspoker.

It claims that they paid themselves huge salaries, up to $250,000, and $120,000 jointly even after the company had folded, and that their office space was actually “a luxury New York City apartment.”

In addition, it claims that a law firm was paid $100,000 for work that was never carried out, and that mining hardware bought for the proposed Quasar Token scheme was the “wrong hardware”.

The huge sums alleged to have been spent negligently and/or fraudulently were revealed when Chamani sought to retrieve funds after the company folded. Chamani refused to sign a release and instead asked for proof of expenditure.

Alex Foxen’s involvement

The court filing claims that it was Alex Foxen who “personally solicited Ms. Chamani’s investment, relying on his personal relationship with her and his goodwill in the poker community."

It adds:

“Mr. Foxen vouched for the entity’s other executives and offered assurances he would be working on Quasar alongside them.”

Foxen has reportedly invested in several schemes and businesses since becoming one of the leading tournament players in recent years.

Poker pro Jessica Dawley is also named as an interested party, the former Air Force veteran taking to Twitter to thank Verstandig and Hintze. She added cryptically:

“I’ve been laying low for a bit but this warrants my return to twitter. I hope all is revealed in due time.”

PokerTube have reached out to Foxen for comment but so far have yet to receive a reply.

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Andrew from Edinburgh, Scotland, is a professional journalist, international-titled chess master, and avid poker player.Read more


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