The following e-filed documents, listed by NYSCEF document number (Motion 005) 37, 38, 52, 53, 59, 60, 61 were read on this motion to/for DISMISS. The following e-filed documents, listed by NYSCEF document number (Motion 006) 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 55, 62, 63, 64, 67, 68, 69, 70, 81, 82 were read on this motion to/for DISMISS. The following e-filed documents, listed by NYSCEF document number (Motion 007) 50, 51, 56, 65, 66 were read on this motion to/for DISMISS. DECISION + ORDER ON MOTION In motion sequence number 005, defendant Denis McEvoy moves, pursuant to CPLR 3211 (a) (7), to dismiss the amended complaint. In motion sequence number 006, defendant Signature Bank (Signature) moves, pursuant to CPLR 3211 (a) (1) and (a) (7), to dismiss the amended complaint. In the alternative, Signature moves for an order staying all proceedings in this action, pending resolution of a parallel action in Florida. In motion sequence number 007, defendants Taglich Brothers, Inc. and Taglich Private Equity, LLC (together, Taglich) move, pursuant to CPLR 3211 (a) (7), to dismiss the amended complaint. Facts The following facts are taken from the amended complaint, and for the purposes of these motions are accepted as true. Plaintiff Q3 Investment Recovery Vehicle, LLC is an entity formed to represent a group of cryptocurrency investors (Q3 Investors) who invested in nonparty Q3 I, L.P. (Q3I), a limited partnership formed to facilitate a cryptocurrency trading club. (NYSCEF Doc. No. [NYSCEF] 36, Amended Complaint
1-2, 8.) In 2017, nonparties Dr. Quan Tran, James Seijas, and Michael Ackerman formed an informal cryptocurrency trading club. (Id. 15.) The club purported to use a proprietary algorithm developed by Ackerman to trade on the cryptocurrency exchanges. (Id.) Plaintiff alleges, however, that there was no successful algorithm, and Ackerman tricked the club by maintaining sole access to exchange accounts and reporting false returns. (Id.). “In 2018, Q3I was created to formalize the club. Q3I would take deposits in real currency from limited partners, give them a proportional limited partnership interest in Q3I, and then sweep their deposits into cryptocurrency exchanges.” (Id.
