A Launceston-based cryptocurrency influencer has two weeks to begin paying back a former investor over $490,000 before bankruptcy processes begin.
Alex Saunders, founder of Nugget's News YouTube channel and cryptocurrency advice service, was sued in the Victorian Supreme Court by New Zealand man Ziv Himmelfarb over alleged failures to repay a loan or provide goods or services.
Last month, the court issued a default judgment in the civil matter ordering Mr Saunders to repay Mr Himmelfarb $479,270 with an additional $8535 in interest and $4156 in costs.
Should the payment not be made or payment plan established by November 18 - 21 days after Mr Saunders was served with the notice - bankruptcy proceedings can be launched by Mr Himmelfarb.
With just over two weeks remaining, Mr Saunders has not contacted Mr Himmelfarb or responded to the allegations in the civil proceedings.
In a statement of claims, Mr Himmelfarb alleged that Mr Saunders offered him an interest in a "long/short crypto fund" via Facebook Messenger and over a video call in February, resulting in Mr Himmelfarb transferring Mr Saunders 4 bitcoins with a total value of $269,682.
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On April 9, Mr Himmelfarb alleges Mr Saunders offered him an interest in a "DCB project", which resulted in a transfer of $65,283 in the cryptocurrency US Dollar Coins.
Mr Himmelfarb also alleges he transferred Mr Saunders $144,305 in ETH coins by way of a loan on May 13, with a condition that it be repaid by May 23.
The crypto fund was alleged to be a "managed investment scheme", but had not been registered as such.
Via solicitors in July, Mr Himmelfarb attempted to have the contract voided within 21 days and to have the money returned, but this allegedly did not occur.
It was the first civil matter to be filed against Mr Saunders after allegations were aired via screen shots on social media in July relating to him seeking loans from other investors in early 2021. They were raised following a live streamed argument he had with another cryptocurrency influencer, Richard Heart.
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A link to a cryptocurrency wallet, allegedly belonging to Mr Saunders, showed several million dollars' worth of investments being deposited, but then quickly being transferred onto a cryptocurrency exchange for reinvestment.
Mr Saunders did not respond to a request for comment.
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