Investors alleging their cousin fraudulently talked them into investing in a cryptocurrency firm have asked a Michigan federal judge to grant them a partial early win and find the firm liable for selling unregistered securities to the public.

The investors filed a motion on Thursday, seeking a win on the first two counts of the suit against the cryptocurrency firm Bitcoin Latinum, which is named as a defendant alongside Kevin Jonna.

The investors — Raymond and Simon Jonna, who are Kevin Jonna's cousins, and Farid Jamardov — argue that no reasonable jury could determine that Latinum is not liable for the sale of unregistered securities because the firm offered tokens to the public via investment contracts titled "Simple Agreement for Future Tokens," or SAFT.

"The SAFTs have all the hallmarks of a security and, as such, should have been registered with the [U.S. Securities and Exchange Commission]. Indeed, the SAFT states it 'is a security,'" the motion states. "Latinum, as the issuer of SAFTs (and the corresponding tokens), violated state and federal securities law by failing to file a registration statement with the SEC."

The investors argue that Latinum is "undeniably" a common enterprise that pooled investors' funds to develop and launch a digital token and blockchain platform, "effectively rendering investors' profits entirely dependent upon the blockchain's successful launch."

Additionally, the motion argues that investors expected that the $514,000 investment would yield profits, further qualifying the tokens as securities.

"Latinum's marketing efforts, listing on public exchanges, and its design of [the] token to be a 'self-inflating' digital asset created the expectation of profits (and was the direct cause of plaintiffs' investment in tokens)," the motion states.

The undisputed facts in the record demonstrate that Latinum is liable for selling unregistered securities under both federal and state law, the motion states and therefore, summary judgment should be granted.

The plaintiffs said Kevin Jonna persuaded them to invest $514,000 to purchase digital assets purportedly offered by Bitcoin Latinum. They never received the tokens or their money back, the investors said.

In May, the Sixth Circuit ruled Bitcoin Latinum could not force the investors' claims into arbitration after the company waited two years to invoke an arbitration clause in a purchase agreement for the tokens.

Last month, Kevin Jonna was ordered to pay $1,000 for missing a deposition deadline in the case.

The investors had complained they had not made any progress scheduling Jonna's deposition despite contacting him five times in July and August to request his availability ahead of the Sept. 15 deadline to complete party depositions in the case.

Jonna responded once to say he was "interviewing a few different lawyers" and that someone would "reach out expeditiously," but he did not provide any dates or agree to sit for a deposition, according to the order.

The cryptocurrency promoter has gone without a lawyer since June 2024, when his Dinsmore & Shohl LLP counsel withdrew from the case.

Representatives for the parties did not immediately respond to requests for comment on Friday.

The investors are represented by Sidney S. Liebesman and Marc C. Tucker of Fox Rothschild LLP and Dennis W. Loughlin and Ashley E. Racette of Warner Norcross + Judd.

Bitcoin Latinum is represented by Eric A. Browndorf and William P. Rubley of Cooper Levenson PA, and Deborah Kovsky-Apap of Troutman Pepper Locke LLP.

Kevin Jonna is represented pro se.

The case is Jonna et al. v. Bitcoin Latinum et al., case number 2:22-cv-10208, in the U.S. District Court for the Eastern District of Michigan.