Retirees Sue Fund Linked to Public Dogecoin Miner Z Squared Over Alleged $500M Scam

Retirees Paula and Stephen Darby have filed a lawsuit against Broad Street Global Management, LLC, and its affiliates for allegedly trying to steal over half a billion dollars from their investors. The couple claims that they invested approximately $1,415,373 in the Broad Street Global Fund, which promised 28% annual returns.

The fund allegedly transferred some of its investment interest into a Nasdaq-listed Dogecoin miner called Z Squared, whose common stock has declined by 76% over the past year. The Darbys' complaint seeks to appoint a receiver over Broad Street Global Fund and dissolve its assets.

In January 2025, the SEC sued Broad Street and its managers for collecting over $1 billion from more than 1,000 investors, with some of that money going towards crypto mining at a loss. The SEC's enforcement action remains ongoing, and Z Squared has been working to become publicly traded since April 2026.

The Darbys are also seeking their cash payout, which was due on May 27, 2026, but Broad Street changed it to stock of a Cayman acquisition company at the last minute. The couple claims that they were misled and want their original payment in cash.