Taylan McRae-Yu, representing a proposed class, alleged fraud and fraudulent misrepresentation against Profitly Inc., DMCB Holdings Inc., Ivan Avramenko, Alexandra Stinson, and others in an NFT (non-fungible token) project. The court initially granted a Mareva injunction, freezing the defendants' assets, including cryptocurrencies, due to these allegations.
Issues:
Whether McRae-Yu failed to disclose all facts initially.
If the injunctive order should continue.
Whether the injunction should apply to personal defendants.
If McRae-Yu should be exempt from providing an undertaking for damages.
Court's Ruling:
The court found McRae-Yu made full and frank disclosure initially.
McRae-Yu demonstrated a strong prima facie case of fraudulent misrepresentation, justifying the continuation of the injunction.
The injunction was continued against all defendants except Alexandra Stinson, as there was insufficient evidence of her personal involvement.
The court relieved McRae-Yu from the requirement to provide an undertaking for damages, noting the role of class actions in providing access to justice.
Costs/Damages:
Costs were awarded to McRae-Yu in the amount of $32,826.50, payable by Ivan Avramenko, Profitly Incorporated, and/or DMCB Holdings Inc. No costs were awarded to or against Stinson.
