The Phoenix investor accuses it of allegedly withdrawing from a scam, project owner applies to dismiss lawsuit

According to Cointelegraph, investors in the cryptocurrency project The Phoenix have accused current leader Daniel Ianello of allegedly withdrawing from a scam and filed a lawsuit in federal court in Tennessee. The plaintiff claims that after taking over Phoenix Community Capital in October 2022, Ianello closed smart contracts and transferred hundreds of thousands of dollars in investor funds, while deleting Discord posts and early versions of the website. Ianello has submitted a motion to dismiss the lawsuit on the grounds that as a resident of Michigan, he has no jurisdictional affiliation with Tennessee and denies any involvement in any securities sales. The project had promised to obtain investment opportunities that were not available in the retail market through a "large community asset pool" and distribute profits to token holders.