Daniel Ianello, a Michigan man accused by investors of orchestrating an exit scam for the crypto project ‘The Phoenix’, has filed a motion to dismiss a lawsuit filed against him in a U.S. federal court in Tennessee.

According to the investor lawsuit filed last month, Ianello took control of Phoenix Community Capital (collectively known as The Phoenix [FIRE]) in October 2022 and accidentally orchestrated an exit scam.

Source: Investor lawsuit complaint

After allegedly taking control of the project’s assets, Ianello is claimed to have shut down its smart contracts. The plaintiffs allege he then “transferred hundreds of thousands of dollars of investor funds, began deleting posts on Discord, deleted earlier versions of Phoenix’s website, and announced its smart contracts would not be restored.”

In his motion to dismiss, Ianello argues that he is a Michigan resident with no purposeful connection to Tennessee, establishing a lack of personal jurisdiction for the court.

“This court does not have personal jurisdiction over Mr. Ianello. Mr. Ianello is domiciled in the state of Michigan”

Ianello further claimed he never sold any securities after joining the company, as he acquired its assets following any alleged sales. He argues he made no statements pertaining to offered investments and claims the plaintiffs are conflating him with The Phoenix and its founders.

The Phoenix promised big returns from community investments

The Phoenix positioned itself as leveraging its “large capital pool of community assets” to pursue investment opportunities unavailable on the standard retail market. The project promised returns on these investments would be distributed among tokenholders through periodic profit releases.

Furthermore, the project touted an in-house incubation program intended to fund, create, and manage new projects, promising community members “high percentage profit sharing.”

Crypto exits leave investors vulnerable

Blockchain security firm CertiK reports losses from hacks, fraud and exploitation totaled $2.47 billion across 34 incidents globally in Q2 2025.

Scams continue to represent a persistent feature in the crypto landscape. Earlier this month, a blockchain security firm reported losses stemming from hacks and exploitation surged in 2025.

Juicy News also highlighted a concerning trend with a report on a crypto romance scam targeting an elderly widow who allegedly lost $282,000.

No justice in time for crypto investors

A victim attempting to hold a bank accountable for failing to spot a potential scam recently filed a second lawsuit after an investment gone wrong.

Meanwhile, a Ponzi scheme operator saw justice meted out after a jury sentenced him to nearly eight years in prison for his actions. The individual, caught orchestrating a deceptive crypto operation, received a 97-month sentence in June.