Reuters Reports on David Castleman’s EminiFX Receivership Work and $100 million Distribution to EminiFX Investors
January 28, 2025
Otterbourg partner David Castleman has been featured in the Reuters opinion column “In $260 million crypto scheme, will brokerage IBKR share liability?” which discusses Castleman’s receivership work in the Ponzi scheme involving trading platform EminiFX and his announcement of a $100 million distribution to EminiFX Investors.
The column also reports on a lawsuit Castleman filed on behalf of defrauded investors against electronic trading firm Interactive Brokers (IBKR), alleging that IBKR knew or should have known that EminiFX’s CEO was running an illegal operation and that it allowed him to “squander” investors’ money. The complaint asserts gross negligence, negligence, and aiding and abetting breach of fiduciary duty.
While the column suggests that the suit raises intriguing questions about how third parties might be held liable for enabling investment scams, Castleman says suing IBKR offers the chance for further monetary recovery for victims of the fraud.
“Every case has its own facts,” Castleman said, adding that in pressing forward with the suit against IBKR, he’s seeking to reclaim “real money for real people.”