Investor sues self-styled power broker, alleges $1.6M blockchain fraud

An investor is suing a self-proclaimed global power broker for securities fraud after a blockchain investment allegedly built on lies collapsed.

Andrew Stranberg filed suit in the U.S. District Court for the District of Puerto Rico against Ali Alatieh Jassim, claiming the unregistered dealmaker induced him to pour $1.6 million into Blockchain Consulting Group, LLC through a web of misrepresentations about his own financial stake and the company's prospects.

Jassim, who resides in Puerto Rico under the Act 22 tax incentive program, allegedly portrayed himself as a high-end global investor with ties to Middle Eastern royalty, including a reported stint as a financial adviser to Sheikh Mansour bin Zayed Al Nahyan of Abu Dhabi. He promoted himself as well-connected in the Middle East and touted involvement in significant Gulf investments.

But Stranberg claims none of it translated into legitimate investment guidance.

According to the lawsuit, Jassim repeatedly told Stranberg he had personally invested "over $3,000,000" in BCCG, urging Stranberg to match his commitment. Wire confirmations later revealed Jassim's actual investment totaled just $903,000—less than a third of what he claimed. The suit further alleges Jassim took credit for $403,500 of Stranberg's own money to inflate his stake.

Stranberg invested $1,631,600 across three transactions in 2022. He claims he never received a dollar in return.

The lawsuit paints a picture of an unlicensed operator collecting undisclosed kickbacks. Jassim allegedly received cash, stock, and other incentives tied directly to capital raised from investors—compensation he never disclosed. He held no officer position, no director title, and no real authority at BCCG, yet presented the investment as a vetted opportunity backed by substantial resources and cutting-edge technology.

"I'm going in big into this. This thing can be a 100x plus play," Jassim allegedly wrote to Stranberg in August 2022. "This could be the biggest multiple return on any investment we have done in our lives," he added months later.

When Stranberg raised concerns and requested financial documentation, Jassim allegedly brushed him off: "We can't ask for bank statements of a company. I would never divulge that."

Stranberg claims he only discovered Jassim's alleged deception in January 2024, when wire confirmations contradicted Jassim's representations about his investment amounts. By then, BCCG had collapsed.

The lawsuit brings nine counts, including violations of Section 10(b) of the Securities Exchange Act and Rule 10b-5, as well as unregistered broker-dealer activity under Section 15. Stranberg seeks $1,631,600 in damages and a court declaration voiding the investment contract.

The case remains in its early stages. No determination has been made on the merits.