FIRE Investors Allege Fund Grab, Owner Moves to Dismiss Case
Daniel Ianello faces a lawsuit in Tennessee federal court for allegedly orchestrating an exit scam involving the crypto project The Phoenix. He reportedly took control of Phoenix Community Capital in October 2022, shut down its smart contracts, and misappropriated hundreds of thousands of dollars from investors. Plaintiffs claim he deleted posts on Discord, removed earlier website versions, and announced the contracts would not be restored. Ianello's motion to dismiss argues he is a Michigan resident with no significant ties to Tennessee, asserting the court lacks personal jurisdiction over him. He denies selling securities and claims he only acquired the company's assets post-alleged sales, accusing plaintiffs of conflating him with The Phoenix's founders. The Phoenix promised high returns through investment opportunities and an incubation program for new projects. Crypto scams have surged, with losses reaching $2.47 billion in the first half of 2025, highlighting ongoing issues in the crypto sector.
