DNA Holdings Venture co-founders Brock Pierce and Scott Walker are named in an explosive, albeit quietly filed, lawsuit, which accuses them of “running pump and dump schemes between drug and alcohol induced benders and illegal high stakes poker games.”
Filed back in March, the suit, which requests a jury trial, is just another bit of bad news for Pierce, who in recent months has been heavily linked to infamous pedophile Jeffrey Epstein, and took part in an interview with a pro-Putin doomsday cult.
Among the suit’s most startling claims are those concerning Pierce and Walker’s hosting of two illegal poker games in Puerto Rico — or more accurately, the aftermath of said games.
According to the lawsuit, the games, held in October and December of 2021, “had a minimum buy in of $100,000” and a one BTC entrance fee.
A portion of the proceeds was supposed to be donated to a Puerto Rican charity called Integro.
The day after the event, however, a participant “reported that his iPhone had been hacked through the wifi network created for game participants and his sim was ‘swapped,’ giving the hackers access to his email and social media accounts.”
It’s also alleged that winners weren’t paid out, while another individual going by “Jacob” admitted to “stealing all of the money and said he was giving it to his family and committing suicide.”
Despite the players being skeptical of this story, millions of dollars have never been recovered, “Jacob” has never been identified, and Integro never received a donation.
Read more: Brock Pierce’s dark and disturbing friendship with Jeffrey Epstein
DNA Holdings washed out
Despite Pierce and Walker’s promises about their crypto connections, near-guaranteed profits, and unimaginable gains, claimants state that for every dollar invested in the funds, only $0.70 was ever returned.
To bring in more investors and keep those who were invested from demanding out, Walker apparently strung them along with talk of a “reverse merge transaction with a company called SRAX,” and promises of “immense value.”
Needless to say, the merger never materialized.
However, numerous new funds were spun up in its absence, with Pierce and Walker presenting them as a way for investors to “focus on ‘early stage VC investments.'”
Instead, the money was invested into a publicly listed company called White Fiber, which is majority owned by Bit Digital, which Pierce sits on the board of.
To convince investors that DNA Holdings would be well capitalized, Pierce and Walker also promised that a small stake they held in Tether, supposedly worth $300 million, would be put into DNA Holdings’ coffers.
While a portion of this stake was injected into the funds, Pierce and Walker have since either encumbered the Tether equity or made it unavailable to those at DNA Holdings.
Pump and dump, spelled out in fine print
In a shocking example of caveat emptor, the plaintiffs acknowledge that Pierce and Walker warned them of what is tantamount to a pump and dump, but buried it in the DNA website.
While buried may be an exaggeration, the disclaimer page is one of the most bizarre attempts to write-off pump and dumping as normal, reasonable and fair.
The page asks, “What will happen to the shares that we hold during the campaign?” It answers, “We will sell the shares we hold while we tell investors to purchase during the campaign.”
It also states that “investors should consider the Information to be one-sided and not balanced, complete, accurate, truthful or reliable.”
It concludes, “If an investor relies on the information in making an investment decision it is highly probable that the investor will lose most, if not all, of his or her investment. Investors should not rely on the information to make an investment decision.”
In all, the suit brings 11 different counts against Pierce and Walker, including, but not limited to, RICO violations, breach of fiduciary duties, and breach of the duty of candor and full disclosure.
On August 3, Pierce and Walker’s legal representatives filed a motion to dismiss and plaintiffs have yet to respond.
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