Crypto Fund Manager Stefanos Papanastasiou Charged for $14.2 Million Losses

Wilfred Michael 

Wilfred Michael

News reporter

19 March 2019,
Crypto Fund Manager Stefanos Papanastasiou Charged for $14.2 Million Losses

According to a March 19 report by The Age, Australia-based crypto fund manager Stefanos Papanastasiou and his wife Shalini Ganapathy were listed as defendants in a lawsuit by Savvas "Sam" Alexiadis, an angry client who reportedly lost AUD$2.7 million ($2 million) in 2017.

Mr. Stefanos Papanastasiou allegedly traded Bitcoin and Ethereum for Alexiadis and some prominent business figures and lawyers in the lead up to the bull market run in late 2017.

To convince prospective clients to invest money with him, The Age quotes court documents as revealing that Papanastasiou told these people including Alexiadis that he spent AUD$500,000 to build an algorithm that maximizes trading profit for investors.

He allegedly sent a message to Alexiadis, that reads:

"I promise this much, I intend to ensure everyone gets a head start, a huge break or hit the jackpot[…], Sam, the numbers are staggering, seemingly unequivocally within reach. This transition in history is like no other before it."

The plaintiff, Alexiadis also claims that Papanastasiou also asked him to send AUD$40,000 (appr. $28,000) to his wife, AUD$35,000 (appr.$25,000) to his sister and $450,000 (app. $320,000) to a mattress supplier in Thomastown.

The promise was that Papanastasiou would send the equivalent of the sum in cryptocurrencies to Alexiadis, but that never happened following the crypto market tumble in 2018.

The accused party is yet to file an official response denying the charges but reportedly said,

“The Supreme Court action is new to me, and I intend to defend myself against his claim as he has been compensated in excess of $2.7m”.

He added, “Sam and his associates have a lot to answer for as the truth of events is vastly different and far more sinister(dishonest).”

Aside from Alexiadis other clients which notably includes former Australian league coach, Mark Thompson invested a total of AUD$20 million ($14.2 million) in Papanastasiou Fund.

Meanwhile, wife Shalini Ganapathy has separated from Papanastasiou since July 2018 and claims to know nothing about his cryptocurrency transactions, a stance also adopted by his sister.

In a similar cryptocurrency crime report, confirmed that U.S Authorities charged Randall Crater the founder and principal operator behind “My Big Coins” a cryptocurrency scheme that defrauded investors through misrepresentations about its nature and value.


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