Brock Pierce Faces Serious Allegations in Lawsuit

A recently filed lawsuit against Brock Pierce and Scott Walker, co-founders of DNA Holdings Venture, has unveiled serious allegations, including claims of orchestrating fraudulent schemes. The suit, which seeks a jury trial, contains shocking details about illegal high-stakes poker games held in Puerto Rico and questionable investment practices.

According to the lawsuit, the poker games, conducted in October and December of 2021, required a minimum buy-in of $100,000 and an entrance fee of one Bitcoin. Participants were promised that a portion of the proceeds would benefit a local charity, Integro. However, the day following one of the events, a player reported that their phone had been hacked through the event's Wi-Fi, leading to unauthorized access to personal accounts. Additionally, it is alleged that winners of the games were not compensated, and a participant named “Jacob” claimed to have absconded with the funds, later expressing intentions of self-harm.

The lawsuit further claims that for every dollar invested in their funds, only $0.70 was returned to investors. To maintain investor interest, Walker purportedly misled them with promises of a reverse merger with a company called SRAX, which never occurred. Instead, funds were allegedly redirected to a publicly traded company, White Fiber, which is primarily owned by Bit Digital, where Pierce holds a board position.

Despite assurances regarding a substantial stake in Tether, valued at $300 million, that was promised to bolster DNA Holdings, it appears that Pierce and Walker have either encumbered this equity or rendered it inaccessible to investors. The lawsuit also highlights a disclaimer on DNA's website that seemingly normalizes the practice of 'pump and dump,' warning investors that reliance on the information provided could lead to significant financial loss.

In total, the lawsuit outlines 11 counts against Pierce and Walker, including RICO violations and breaches of fiduciary duties. Legal representatives for Pierce and Walker filed a motion to dismiss the case on August 3, but the plaintiffs have yet to respond.