John Day v. Varun Datta, et al.

CourtDistrict Court, S.D. Florida
DecidedFebruary 2, 2026
Docket1:22-cv-22572
StatusUnknown

This text of John Day v. Varun Datta, et al. (John Day v. Varun Datta, et al.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John Day v. Varun Datta, et al., (S.D. Fla. 2026).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

CASE NO. 22-CV-22572-RAR

JOHN DAY,

Plaintiff,

v.

VARUN DATTA, et al.,

Defendants. _______________________________________/

ORDER GRANTING DEFENDANTS VARUN DATTA AND 4NEW LTD.’S RENEWED MOTION TO DISMISS

THIS CAUSE comes before the Court on Defendants Varun Datta and 4New Ltd.’s Renewed Motion to Dismiss for Lack of Jurisdiction (“Motion”), [ECF No. 90], filed on June 16, 2025. Plaintiff filed a Response in Opposition to the Renewed Motion to Dismiss (“Response”) on June 26, 2025, [ECF No. 91]. Defendants then filed a Joint Reply (“Reply”), on July 3, 2025, [ECF No. 92]. Having carefully considered the parties’ relevant submissions, the record, and applicable law, it is hereby ORDERED AND ADJUDGED that the Motion, [ECF No. 90], is GRANTED for the reasons set forth herein. BACKGROUND A. Factual Background Defendant 4New Ltd. (“4New”) is a limited company that sells a cryptocurrency called “KWATT.” Second Amended Compl. (“SAC”), [ECF No. 60] ¶¶ 2, 16. 4New is a British company with its principal place of business in London, United Kingdom. SAC ¶ 16. It was founded by Defendant Varun Datta (“Datta”) in October 2017, and Datta was the Chairman of 4New from October 2017 through December 2021. SAC ¶¶ 4, 16, 19. In October 2017, Datta hired Defendant Saransh Sharma (“Sharma”), a Florida citizen, to work for 4New as its President. SAC ¶ 20. On August 21, 2018, Plaintiff John Day (“Day”), a resident of Indiana, purchased 4New’s KWATT cryptocurrency. SAC ¶¶ 13, 86. Plaintiff acquired KWATT by transferring his ownership interest in Ethereum (“ETH”) cryptocurrency for 4New’s KWATT. SAC ¶ 86. Between August and December 2018, Plaintiff made multiple purchases of KWATT. SAC ¶ 74.

Plaintiff alleges that Datta and Sharma made false statements of material fact about 4New’s business and KWATT cryptocurrency “with the intent to deceive potential investors, including Day, and to persuade investors to purchase KWATT.” SAC ¶ 5. Specifically, Plaintiff points to Datta and Sharma’s appearance, on behalf of 4New, at the North American Bitcoin Conference in Miami, Florida in January 2018. SAC ¶ 25. During the Conference, 4New had a booth, at which prospective investors could obtain information about 4New and its services, as well as join a waitlist to purchase 4New’s KWATT cryptocurrency. SAC ¶ 26. Plaintiff contends that during the Conference, Sharma made several false statements on behalf of 4New, which were later posted on 4New’s website. SAC ¶ 25. Thereafter, Sharma, while living and working in Florida between October 2017 and July

2018, made various purportedly false statements about 4New’s business and KWATT cryptocurrency; some were published in an online press release on February 8, 2018, and others were quoted on 4New’s website on June 5, 2018. SAC ¶¶ 84–85. Plaintiff asserts that Datta similarly made false statements about 4New’s business and KWATT cryptocurrency, which were quoted in an article that was published online on or about July 23, 2018. SAC ¶ 87. Plaintiff contends that he relied on these statements made by Sharma and Datta, as well as those published on 4New’s website, when he purchased KWATT for the first time on August 21, 2018. SAC ¶¶ 6, 25, 86, 89. After completing his first KWATT purchase, Plaintiff began to communicate directly with Datta. SAC ¶ 88. From October 2018 to January 2019, Plaintiff alleges that Datta made additional false statements to Plaintiff regarding 4New’s KWATT cryptocurrency. SAC ¶¶ 88–90. Relying on these communications with Datta, Plaintiff states that he “exchanged his valuable ETH for 4New’s valueless KWATT over one hundred times between August 21, 2018 and January 3,

2019.” SAC ¶ 89. After these exchanges, Plaintiff soon concluded that many of Defendants’ statements about 4New’s business and KWATT cryptocurrency were false. SAC ¶ 77. And on January 3, 2019, Plaintiff messaged Datta, “[y]ou lied to me – directly” and demanded repayment for his investment in KWATT. SAC ¶ 78. Datta messaged Plaintiff: “I’m here and I will honour each and every commitment that I made to yourself and the other members.” SAC ¶ 90. However, from January 2019 through July 2020, Plaintiff alleges that Defendants continued to make false statements to Plaintiff and other KWATT investors to persuade them to hold onto their KWATT. SAC ¶¶ 79, 90. Specifically, Datta purportedly encouraged investors to not “dump” their KWATT by telling them he had secured funds that he could use to honor his

obligations to investors by buying back their KWATT. SAC ¶ 90. Plaintiff continued to hold onto his KWATT in anticipation of such payments from Datta, but Plaintiff states that “Datta never had the funds necessary to buy back [Plaintiff’s] KWATT and never made any payments to [Plaintiff].” SAC ¶ 96. As a result, Plaintiff suffered financial losses while Defendants retained possession of, used, or sold for their own benefit Plaintiff’s valuable ETH cryptocurrency. SAC ¶¶ 96, 101. B. Procedural Background On August 12, 2022, Plaintiff filed this action pleading fraud, civil theft, and unjust enrichment claims against Defendants. See Compl., [ECF No. 1]. On November 8, 2022, Datta and 4New filed a motion to dismiss for lack of personal jurisdiction. [ECF No. 9]. That same day, Sharma filed a motion to dismiss for failure to state a claim. [ECF No. 10]. Following jurisdictional discovery, the Court granted Defendants’ motions to dismiss and allowed Plaintiff to amend his Complaint. [ECF Nos. 39 and 40].

On August 11, 2023, Plaintiff filed an Amended Complaint, [ECF No. 41], and Datta and 4New subsequently filed another motion to dismiss for lack of personal jurisdiction. [ECF No. 42]. Sharma also filed a motion to dismiss for failure to state a claim, [ECF No. 43], which the Court denied, [ECF No. 55], finding that Plaintiff had alleged his fraud claims with particularity as required by Federal Rule of Civil Procedure 9(b). However, the Court granted Datta and 4New’s motion to dismiss for lack of personal jurisdiction. [ECF No. 56]. The Court found that while Plaintiff alleged his fraud claims with particularity as required by Rule 9(b), Plaintiff failed to establish that the Court had personal jurisdiction over Datta and 4New. Id. at 6–19. Specifically, Plaintiff did not adequately allege that the Court had specific personal jurisdiction over 4New under sections 48.193(1)(a)(1) and 48.193(1)(a)(2) of the Florida Statutes and failed to allege

specific personal jurisdiction under section 48.193(1)(a)(2) and general personal jurisdiction under section 48.193(2) for Datta. See generally id. On October 30, 2024, Plaintiff filed a motion for leave to file a second amended complaint, [ECF No. 58], which the Court granted, [ECF No. 59]. On February 26, 2025, Plaintiff filed his Second Amended Complaint, the now operative complaint. [ECF No. 60]. The Second Amended Complaint asserts that the Court has specific personal jurisdiction over 4New under section 48.193(1)(a) because 4New (1) conducted business through its website and maintained its “effective headquarters” in Florida from October 2019 to December 2021, SAC ¶¶ 17, 30, and (2) committed tortious acts (fraud) within Florda, SAC ¶ 17. Plaintiff also asserts that the Court has specific personal jurisdiction over Datta under section 48.193(1)(a) because Datta committed tortious acts (fraud) while in Florida. SAC ¶ 17. Plaintiff further alleges general personal jurisdiction over Datta under section 48.193(2), because he lived in Florida from October 2019 to December 2021; formed and operated at least six businesses under Florida law; rented commercial and residential properties in Florida; purchased a home in Florida; registered vehicles in Florida;

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