ProsperEntrust (USDT) Crypto Fraud, Investor Misrepresentation, and Fund Misappropriation Case

The defendant has requested the court to dismiss the case.

E.D. Texas

Court

4:25-cv-00800

Case number

05/01/2023

Class period Start

07/25/2025

Class period End

09/23/2025

Lead Plaintiff motion deadline

ProsperEntrust USDT investors filed a claim against ProsperEntrust operators for orchestrating a fraudulent crypto investment scheme and misleading investors with fabricated affiliations and unauthorized LLC use.
Over $1 million in investments were collected through deception and diverted for personal use.
USDT investors can join this case to be notified about potential recovery.
Case Details:

Between May 2023 and July 2025, ProsperEntrust representatives Pavan Varenya Chagarlamudi and Blanca Aguilar falsely promoted a high-yield crypto investment program. They solicited funds through emails, calls, and messaging apps, claiming affiliation with ProsperEntrust LLC—an entity they lacked authorization to represent. Investors, including working-class professionals and immigrants, were promised lucrative returns and even eligibility for the EB-5 visa.

In reality, the defendants exploited personal relationships and used false documentation to gain trust. They received over $1 million in Tether (USDT) and wire transfers, then converted the funds for personal use. The scheme involved unauthorized use of LLCs, some owned by victims themselves, and was designed to appear legitimate through falsified investment agreements and marketing materials.

Based on these events, USDT investors filed a claim against ProsperEntrust, accusing the organizers of the following:
It misrepresented affiliations and qualifications to solicit investment.
It defrauded investors through unauthorized use of entities and falsified agreements.
It misappropriated investor funds for personal gain while hiding prior legal issues.
Considering all representations, investors believe the scheme was knowingly designed to defraud victims under the guise of a legitimate crypto investment vehicle.

Case Type

US Securities Class Action

Case Status

Motion to dismiss

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Fraud,

Failure to Disclose

Suspected Party

Management,

Service Provider

Security Type

Crypto Asset

Trade Direction

Long

Shock Event Date

05/01/2023

Filing date

07/25/2025

Lead Plaintiff Deadline

09/23/2025

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