Investment Lawsuit Filed Against Cryptocurrency Fund
WILMINGTON, N.C. – A local businessman from Wilmington, along with his electric company, is spearheading a proposed nationwide class-action lawsuit against a cryptocurrency fund. They allege that the absence of proper financial safeguards led to an insider embezzling nearly $60 million in investor funds.
The lawsuit was submitted on June 19 in New Hanover County Superior Court. It accuses Quantum Blocks Capital, LP (QBC) and its management of misrepresenting a “professionally managed” fund while granting a single manager excessive, inadequately monitored control over substantial sums of money.
Caleb Hobbs, alongside Hobbs Electric LLC, claims they invested at least $2.45 million in digital currency (USDC) between December 2024 and September 2025. The complaint states that managers Jason A. Williams and Domenico Grillo solicited these investments, promising investors semiannual returns ranging from 10% to 20%. They cited an AI-driven Bitcoin trading program called “Logic” and a strategy involving diversified investments in real estate.
Instead, the lawsuit points out that investor funds were funneled through cryptocurrency exchanges like Kraken and Binance directly into the hands of QBC manager Clive Smith, who acted without board oversight or necessary dual-authorization protocols.
The situation reportedly began to deteriorate in January 2026 when expected distributions were not made. For two months, QBC managers allegedly communicated to investors that the delays were due to a standard “know-your-customer” verification issue with Binance. They claimed to have been in contact with Binance founder Changpeng Zhao and mentioned spending around 300 hours on customer service interactions.
However, the lawsuit asserts that in April 2026, legal counsel for QBC GP disclosed that Smith had lost his authority and was under FBI investigation. By May 13, QBC formally demanded Smith return $59,966,213.09, accusing him of misappropriating those funds to personal accounts and third-party nominees.
QBC has since frozen all redemptions, withdrawals, and subscriptions, leaving investors uncertain about how much of their money is still available. The lawsuit is seeking class-action status, along with compensatory and punitive damages, an asset freeze, and a complete accounting of the remaining funds.
