A cryptocurrency investor has filed a lawsuit against blockchain platform Oraichain and associated entities, alleging fraud and breach of contract.
According to the complaint filed by plaintiff Eric Meltzer, he invested approximately $73,000 in ORAI tokens in late 2020 and became one of Oraichain's largest investors. In recognition of his investment and potential influence within the U.S. cryptocurrency market, he was offered an advisory role with compensation of 1,000,000 ORAI tokens, as outlined in an agreement dated November 10, 2020. Meltzer claims that the defendants later induced him to accept only half that amount under false pretenses and subsequently attempted to reduce his compensation further to just over 1,000 tokens.
Meltzer alleges that after agreeing to the revised terms without additional consideration, as a gesture of goodwill toward Oraichain's efforts to expand in the U.S., he was terminated from his advisory role without receiving any compensation. He further claims the defendants seized more than 59,930 ORAI tokens owed to him under a staking agreement. When he challenged these actions, the defendants allegedly accused him of insider trading based on a backdated non-disclosure agreement he contends was obtained under coercion.
The lawsuit seeks compensatory damages exceeding $42 million for the alleged lost token value, along with punitive damages, attorney fees, and restitution for both the seized tokens and those initially promised under the advisory agreement.
The plaintiff is represented by attorneys Michael C. Ledley, Stephen F. Raiola, and John D. Fowler of Kibler Fowler & Cave LLP. The case was filed in the United States District Court for the Eastern District of New York under Case ID 25-3284.