On Tuesday, September 8, 2026, Derek Jaeger and Galina Polyakova filed a complaint in the US District Court for the District of Puerto Rico against Thomas McLaughlin, Neil Kapoor, Coral DeFi LP, Coral Capital LLC, and DNA Holdings Venture Inc. The lawsuit alleges securities fraud, claiming the plaintiffs were induced into investing $1.5 million into a cryptocurrency fund based on false and misleading statements.
The complaint, which seeks to recover damages under the Securities Exchange Act of 1934 and Delaware common law, states that Jaeger invested $1 million and Polyakova invested $500,000. The plaintiffs allege that McLaughlin and Kapoor, representatives of Coral Capital and DNA Holdings, made repeated promises of beating the market and achieving excellent past performance. These representations were allegedly made during a bachelor party in May 2024 and reiterated in subsequent meetings.
According to the filing, Jaeger and Polyakova were presented with a three-fund strategy: the “Main Fund,” “High Yield LP Fund,” and “Moonshot LP Fund I.” Jaeger was promised an allocation of $700,000 to the Main Fund, $200,000 to High Yield, and $100,000 to Moonshot, with Polyakova receiving a similar allocation. However, the complaint asserts that contrary to these representations, McLaughlin unilaterally redirected the entire $1.5 million to the Main Fund, and Coral DeFi LP never implemented the discussed three-fund strategy.
The plaintiffs further claim that they received no statements or reporting for the High Yield and Moonshot funds. Inquiries about the allocation were allegedly met with silence. In October 2024, Coral Capital announced a merger with DNA Holdings, stating only the name on performance statements would change. While a brief positive performance period occurred in November 2024, the plaintiffs later experienced significant losses.
The lawsuit details that Bitcoin’s value increased by nearly 80% during the period the plaintiffs experienced bad performance, a benchmark the defendants had promised to beat. Requests for fee waivers were reportedly ignored.
By February 2026, Kapoor had left the Telegram group used for communication, and in April 2026, a DNA Holdings team member informed the plaintiffs that the company was winding down the funds. McLaughlin allegedly admitted that the High Yield fund was not operational and required substantial capital.
The complaint outlines multiple counts, including Violation of Exchange Act Section 10(b) and Rule 10b-5, Fraudulent Misrepresentation under Delaware Law, Negligent Misrepresentation under Delaware Law, Breach of Implied Covenant of Good Faith and Fair Dealing under Delaware Law, and Unjust Enrichment under Delaware Law.
The plaintiffs are seeking damages, costs, interest, and attorneys’ fees, with the exact amount to be determined at trial. They have also demanded a jury trial.
Please contact BlockTribune for access to a copy of this filing.
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