BOULDER – A class action lawsuit has been brought against marketing specialist and blockchain consultant based in Boulder Jacob Kostecki, alleging that he defrauded approximately 2,000 ticket holders and sponsors of an unfortunate convention this year.
Kostecki was the promoter of the 2020 event “Massive adoption in Memphis: Blockchain and digital assets”, which was to take place on February 27 and 28 at the University of Memphis. The event was originally scheduled for November 2019, but has been postponed to February of this year.
The lawsuit filed Thursday in the US District Court for Colorado alleges that Kostecki offered round-trip airfare and accommodation packages at a relatively low rate of $ 300 to $ 400. On January 31, he published a blog post canceling the event due to lower than expected sales and intended to reimburse everyone by July.
However, the complaint alleges that Kostecki has pocketed the funds and is not repaying as promised, saying that he told clients that he was delaying repayments until the end of the ongoing COVID-19 crisis.
The purpose of the complaint is to recover the costs of purchasing tickets or sponsorships for the event, as well as the legal fees for filing the complaint.
Cryptocurrency enthusiasts on Twitter castigated the collapse of the event using the hashtag #cryptofyrefest, a reference to the infamous Fyre Festival which promised a massive low-cost music event and delivered an organizational debacle, which cost investors $ 26 million.
Kostecki has a history of aggressive behavior in the field of startups. In 2016 TechCrunch reported stories of Polish entrepreneurs claiming that Kostecki had offered them consultancy assistance but then used confidentiality agreements and threatened their intellectual property with it. He told the tech publication that the allegations were mostly true.
Kostecki also appears to have an active arrest warrant in his native Poland in January.
In a statement, he told BizWest that he disputes the allegations in the complaint.
“I do not agree with the allegations made in the trial, I think there are many errors in the document and I look forward to my day in court,” he said.
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