Gate News report, on March 27, according to Foresight News, Nasdaq-listed Ethereum treasury company Bit Digital has filed a lawsuit in New York, accusing Blockfusion founder Alex Martini-Lo Manto of being involved in a $5 million crypto fraud. The lawsuit documents show that Martini-Lo Manto attempted to merge Blockfusion with the technology investment company Blue Acquisition Corp., with the merger plan aimed at making Bit Digital’s $5 million investment disappear without repayment. The board of Blue Acquisition Corp. is chaired by a retired U.S. general, and the two reportedly met during the Burning Man festival. Although the retired general himself is not listed as a defendant, insiders say he leveraged his influence to support the transaction to maintain personal connections. Bit Digital is currently trying to prevent the merger through the lawsuit and recover the investment funds.
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