Bit Digital files $5 million crypto fraud lawsuit, company owned by a retired US general involved

Foresight News reports, citing Page Six, that Nasdaq-listed Ethereum treasury company Bit Digital has filed a lawsuit in New York, accusing Blockfusion founder Alex Martini-Lo Manto of a $5 million crypto fraud. According to the lawsuit, Martini-Lo Manto attempted to merge Blockfusion with technology investment company Blue Acquisition Corp., and this merger plan was designed to make Bit Digital's $5 million investment disappear without repayment. The board of Blue Acquisition Corp. is chaired by a retired US general, and it is alleged that the two met at Burning Man. Although the retired general himself is not listed as a defendant, sources claim he used his influence to support the transaction in order to maintain a personal relationship. Currently, Bit Digital is seeking to prevent the merger and recover the funds through litigation.