Founder of crypto company accused of faking own death faces class action lawsuit

The founders of Zerebro, a cryptocurrency project, are facing accusations of promoting fake artificial intelligence, manipulating token markets, and even staging one of their deaths to divert attention from concerns of insider trading. The allegations have led to a class-action lawsuit filed by Canadian investor Jonathan Beckwith in federal court in New York.

Jeffry Yu and Agustin “Tint” Cortes, the founders of Zerebro, marketed the project as a venture-grade AI infrastructure initiative supported by proprietary AI models and a token called $ZEREBRO, described as its economic engine. However, the lawsuit claims that Yu and Cortes secretly controlled the token supply and conducted an undisclosed market-making operation, manipulating the token’s value. As questions arose about the absence of the AI technology, the price of $ZEREBRO plummeted, resulting in the founders exiting with substantial profits.

During the collapse, Yu reportedly staged what seemed to be a suicide, released an obituary, and then reappeared later to continue launching other cryptocurrency projects. This move was perceived as an attempt to divert attention from the failing project and mounting questions surrounding their actions.

The lawsuit filed against the founders seeks damages on behalf of the token purchasers affected by their alleged fraudulent actions. The claims include fraud, false advertising, and deceptive business practices, highlighting the deliberate exploitation of public trust in emerging technology.

According to the lawsuit, this case goes beyond a failed startup or ambitious founder; it exposes misrepresentations, concealed market manipulation, and the exploitation of the public’s trust in the advancement of technology. The suit aims to hold the founders accountable for their actions and obtain compensation for the affected token purchasers.

The allegations against the Zerebro founders are a sobering reminder of the risks associated with investing in the cryptocurrency market. It underscores the importance of due diligence, transparency, and accountability in the development and promotion of such projects to safeguard investors and maintain trust in emerging technologies. The outcome of this lawsuit could have significant implications for the cryptocurrency industry as it seeks to regulate and police fraudulent activities within the market.