Law360 reports on a putative class action filed by Murphy’s Law founding partner Liam Murphy on behalf of investor Caleb Hobbs against Quantum Blocks Capital LP, its general partner, and board members over the purported loss of nearly $60 million. Reporter Abigail Harrison covers the case, which was filed in the North Carolina Business Court (Case No. 2026CVS4130).
According to the complaint, the loss came not from an outside hacker but from one of the fund’s own board members, who allegedly siphoned the money away. Quantum Blocks Capital, or QBC, was marketed as a professionally managed fund offering real estate diversification and an AI-driven trading strategy, but those promises bottomed out when investors were notified the funds had been rerouted. Hobbs, a North Carolina resident, and his company Hobbs Electric LLC invested at least $2.45 million in USDC stablecoin into QBC and a strategy called “Logic” after being solicited by board members.
The complaint alleges that board members represented Logic as an artificial intelligence-driven strategy in which proprietary AI bots traded spot-market bitcoin, and promised investors returns of 10% to 20% twice a year along with safeguarding through hard asset exposure in real estate. Instead, investor assets were allegedly aggregated and routed through cryptocurrency exchanges Binance and Kraken, where all fund assets came under the ownership of a sole board member. One manager allegedly used his real estate connections to encourage clients to sell properties to invest, reinforcing the impression that QBC was a safe investment rather than a speculative cryptocurrency strategy.
When expected returns did not materialize in January 2026, investors were told the delay was due to a problem with Binance. According to the suit, board members claimed they were in contact with Binance founder Changpeng Zhao and had logged hundreds of hours on live chat to resolve the issue. Months later, in April, counsel for the general partner sent a letter to limited partners disclosing that one of the board members had potentially rerouted $59,966,213 to accounts under his control. The fund stated that the FBI had opened a criminal investigation, froze all withdrawals and distributions, and hired investigators to trace the assets.
The complaint alleges that the theft does not absolve QBC and its remaining managers of responsibility, because the fund never implemented dual-authorization controls, withdrawal restrictions, independent verifications, or insurance safeguards to prevent this kind of loss. Hobbs argues that court intervention is now imperative to preserve what remains in the fund, locate assets, and force the company to answer to investors, warning that with each passing day the likelihood of tracing and recovering fund assets diminishes. He brings claims under the North Carolina Securities Act, among other common law and equitable claims, and seeks to represent all people who invested in Logic, QBC, or any related investment vehicles.
Hobbs is represented by David M. Wilkerson of Wilkerson Justus PLLC, T. Liam Murphy of Murphy’s Law: The Crypto Law Firm, and Adam A. Schwartzbaum of Schwartzbaum PA.
If you invested in Quantum Blocks Capital or believe you have been the victim of investment fund fraud or a crypto diversion scheme, contact Murphy’s Law for a free consultation to discuss your legal options.