A Californian homeowner is suing a prospective buyer for attempting to pay for 30% of the property using a “worthless” cryptocurrency.
After attempting to sell her home, California-based psychologist Mary Shea is suing buyer, Mike Cherwenka, for attempting to pay for 30% of the property’s value in the form of a “worthless” crypto asset called ‘Troptions.Gold.’ The dispute has left her unable to sell the home as Cherwenka’s company still claims an interest in it.
Shea accuses Cherwenka and his company Best Buy Homes of violating securities and state racketeering laws by misleading herself and other members of the public as to the nature of the Troption virtual currency.
Her complaint states:
“Cherwenka and Best Buy defrauded Shea by executing a scheme whereby they would offer to purchase her property for cash, and then, as part of the scheme, introduce confusing and false statements into the real estate contract that would, in their view, give them license to 'pay' for the property using worthless Troptions.Gold”
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After negotiating a sale price of $125,000, Shea states that Cherwenka presented the contract with clauses relating to a Troptions payment, with no further elaboration made.
The plaintiff states that she was assured by her real estate broker than an independent attorney would confirm the funds prior to the deal’s closure, however she later discovered that the closing attorney was associated with Cherwenka.
On the closing date in March, Cherwenka threatened to sue Shea when she expressed apprehension after being instructed to open a digital wallet to accept the Troptions.