We are proud to announce that Angelos Paphitis, Managing Partner at AGPLAW, and Maria Constantinou, Partner of the Disputes team at AGPLAW, have successfully secured a significant injunction in the Cyprus courts.

This victory includes obtaining an international Mareva injunction, freezing assets of the Defendants up to €50 million.

Our client, a UAE entity, acquired loan facilities from a Cyprus company which, in 2019, engaged in a financing agreement with a Cayman Islands Fund to invest in a new blockchain Swiss venture. These loan facilities totalled just over €70 million. However, upon acquisition, our client discovered the investment had collapsed, the project had been cancelled, and fraudulent activities appeared to benefit the fund manager and majority shareholder.

After extensive investigations, it was revealed that the majority shareholder and other associated companies were issuing invoices towards the Fund for services that were never provided. These fraudulent activities led to significant unjust enrichment for the majority shareholder and its associated companies, in clear breach of the loan agreements with the Fund which stipulated that the funds should be used exclusively for the blockchain venture.

Given these breaches, our clients terminated the loan agreements and initiated legal actions to recover the money paid. The legal action included claims for breach of contract following default of the loan agreement, unjust enrichment due to the fraudulent invoices, and the imposition of a constructive trust on any funds received by the majority shareholder or its associated entities.

We are pleased to report that our ex-parte application for a Mareva injunction was granted, effectively freezing the funds and assets of the main defendants up to €50 million. This injunction is critical in ensuring that our clients can secure their financial interests while the case proceeds.

Key Legal Areas Involved

The Mareva injunction is a significant achievement as it provides our client with a measure of security and maintains the status quo while the litigation is ongoing.

AGPLAW remains committed to delivering exceptional legal services and achieving the best possible outcomes for our clients. This case is a testament to our dedication, expertise, and the powerful legal strategies we employ.