Phoenix FIRE Investors Allege Exit Scam as Owner Seeks Case Dismissal
Daniel Ianello, accused of orchestrating an exit scam involving the cryptocurrency project The Phoenix, has filed a motion to dismiss a lawsuit against him in Tennessee federal court. Investors allege Ianello took control of Phoenix Community Capital in October 2022, then abruptly shut down its smart contracts and diverted funds.
Details of the Allegations
Court documents claim Ianello transferred hundreds of thousands in investor money, deleted project communications on Discord, removed historical website content, and declared the smart contracts would not be reinstated. These actions allegedly followed a pattern consistent with exit scams in the crypto space.
Legal Defense Strategy
Ianello’s dismissal motion cites jurisdictional issues, noting his Michigan residency. He denies selling securities, stating he acquired assets after the disputed transactions occurred. The filing attempts to separate Ianello from The Phoenix’s original founders and their promotional claims.
Project Background
The Phoenix promoted exclusive investment access through pooled community assets, with profits to be distributed to token holders. Its incubation program promised to develop new projects generating returns for participants.
Broader Crypto Scam Landscape
This case emerges amid growing concerns about cryptocurrency fraud. Security firm CertiK reported $2.47 billion lost to crypto scams in early 2025, highlighting ongoing industry vulnerabilities.
