- Entrepreneur Arman Oyekenov is suing partners for fraud, disputed funds are frozen
- Shanghai Upgrade will increase user control of assets on Ethereum
Arman Oyekenov, a reputable Kazakh entrepreneur, is fighting to regain frozen crypto assets worth millions of dollars after his former business partners allegedly misappropriated them.
He claims Ethereum’s upcoming Shanghai upgrade will make it easier to steal the frozen funds, Bankless Times learned from a press release.
International court froze $23M of assets
Oyekenov, Julian Svirksy, and Denis Donin set up a crypto real estate business and investment service platform called Tensigma, each owning a third. Oyekenov subsequently sued Svirsky and Donin for committing fraud.
In 2021, the Commercial Division of the British Virgin Islands High Court ruled to freeze the assets of Tensigma Limited up to the value of $23 million, effectively prohibiting Svirsky and Donin from dealing with them. The ruling is still in effect.
$6M has already been stolen
Oyekenov alleges that despite the verdict, Tensigma assets worth over $6 million have been stolen and hidden. He adds that the upcoming Shanghai upgrade of the Ethereum Mainnet will allow Svirsky to disappear with millions more.
Shanghai upgrade increases user control of funds
This is because the upgrade increases user control of funds, making it possible for asset holders to “unstake” their assets for the first time. Shanghai is scheduled to take place on April 12. It is expected to drive the price of ether down, among other things.
The stolen crypto, worth more than $6.2 million, has been run through privacy mixers, making it very difficult to trace the Bitcoin and Ethereum. Tensigma still holds Ethereum worth around $10 million, which is currently staked on the Beacon Deposit Contract.
International community is scrutinizing the case
Legal experts all over the world are scrutinizing the case. It raises essential issues involving the ability of the justice system, regulators, and criminal authorities to fight fraud and money laundering on digital asset networks. The FBI and other law enforcement agencies have been alerted about the case as well.
Contributors
