Two 77-year-old retirees have sued Broad Street Global Management and related parties, alleging they were denied more than $1.4 million they were entitled to receive after choosing to redeem
Two 77-year-old retirees have sued Broad Street Global Management and related parties, alleging they were denied more than $1.4 million they were entitled to receive after choosing to redeem their investments for cash.
Paula and Stephen Darby filed the complaint on Sept. 4 in the U.S. District Court for the Southern District of Florida.
The couple, a retired elementary school teacher and former manufacturing representative, said they invested a significant portion of their life savings in Broad Street Global Fund to generate retirement income.
Related: Nasdaq invests $100M in fintech giant at $21B valuation
According to the complaint, Broad Street sent investors a redemption notice on Nov. 14, 2025, offering either cash equal to their capital-account balance within 180 days or shares in a special purpose acquisition company.
The Darbys elected cash. They allege Broad Street told investors on May 22, five days before the payment deadline, that it would instead redeem them with stock.
The Darbys are seeking damages of at least $1.42 million, the return of allegedly misappropriated assets and unpaid distributions, dissolution of the fund and appointment of a receiver to oversee its liquidation.
The claims are allegations in a civil lawsuit and have not been adjudicated.
Broad Street is separately facing an ongoing Securities and Exchange Commission enforcement case filed in January 2025. The SEC alleges the fund raised more than $1 billion from over 1,000 investors through a “multi-faceted fraud.” A federal judge appointed a monitor in April 2025.
The SEC case matters because it involves the same fund and several of the same defendants now accused by the Darbys of denying their cash redemption.
Crypto entered the dispute through Broad Street’s Altcoin Mining Series.
The Darbys allege Broad Street moved that business into Z Squared, a cryptocurrency miner, through a transaction involving the former Coeptis Therapeutics Holdings.
The deal closed April 24, 2026. Z Squared subsequently became the Nasdaq-listed company under ticker ZSQR, with operations focused on mining Dogecoin and Litecoin.
BSG Series CM contributed roughly 9,800 mining machines in exchange for 43.9 million shares and became Z Squared’s controlling shareholder with about 80% ownership immediately after the merger.
The business has struggled to turn mining into profits. Z Squared reported $1.58 million in second-quarter mining revenue, including $1.39 million from Dogecoin, but recorded a $13.72 million net loss attributable to common shareholders.
Its stock has also fallen sharply from a 52-week high of $21.41, trading around $3.27 on Sept. 10.
The retirees argue that investors should receive the cash they selected rather than being forced into accepting shares tied to a money-losing crypto mining business.
Both their lawsuit and the SEC enforcement proceeding remain ongoing.
TheStreet Roundtable reached out to Broad Street Global Management and Z Squared for comment and will update this story if either responds.
Related: $100 billion inflation shock could keep interest rates higher for longer
