Judge Keeps Lis Pendens on Two Las Vegas Homes in Alleged Cryptocurrency Mining Fraud Case – BlockTribune
On Wednesday, May 13, 2026, the United States District Court for the District of Nevada issued an order concerning a dispute over properties allegedly purchased with fraudulent funds. Judge Jennifer A. Dorsey ruled on a motion to expunge a lis pendens, a notice filed on a property to indicate ongoing litigation that could affect its title.
The plaintiff, Investment Recovery Fund, Inc. (IRF), acting as an assignee for investors in a purported cryptocurrency mining fraud, claims that the defendants used stolen investor funds to acquire, renovate, and maintain three Las Vegas homes. IRF filed a lis pendens on these properties as part of its lawsuit, which includes claims under Nevada’s Uniform Fraudulent Transfer Act, seeking to prevent further fraudulent transfers of the properties.
Defendants Ichi Chen, Zizel, LLC, Zizel Home, LLC, and Bohome, LLC, moved to have the lis pendens removed. They initially argued that a lis pendens is only appropriate when an action directly involves title or possession of a property, citing a previous Nevada Supreme Court case, Levinson v. Eighth Judicial District Court.
However, the court referenced a more recent Nevada Supreme Court decision, Tahican, LLC v. Eighth Judicial District Court, which clarified the availability of lis pendens in fraudulent transfer actions. The Tahican court held that Nevada Revised Statute § 14.010 does not require a party to demonstrate entitlement to title or possession, and it disavowed Levinson to the extent it suggested otherwise. Crucially, the Tahican court expressly stated that a fraudulent transfer claim can support a lis pendens if the claim seeks to void a real property transfer, thereby preventing debtors from benefiting from fraudulent transfers and hindering collection efforts.
Judge Dorsey found that IRF had demonstrated its entitlement to maintain a lis pendens on two of the three properties: 1568 Shadow Mountain Place and 5735 Madre Mesa Drive. The court noted that the complaint detailed the use of investor money for the acquisition or renovation of these properties and alleged they were conveyed to conceal fraud. IRF’s prayer for relief, which included avoidance of transfers and the imposition of a trust and equitable lien, further supported the connection of these properties to the case under the Tahican principles.
The court, however, granted the motion to expunge the lis pendens for the third property, located at 1834 Sycamore Trail. This decision was based on the fact that the Sycamore Trail property was not mentioned in the plaintiff’s complaint or its opposition to the motion to expunge. Therefore, the motion to expunge was granted for the Sycamore Trail property and denied for the Shadow Mountain and Madre Mesa properties.
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