A US judge ordered a rare forensic search of PlayUp boss Daniel Simic’s devices, after finding he breached court orders and may have tampered with key documents in a dispute with ex-US chief Dr. Laila Mintas.
Magistrate Judge Nancy Koppe ordered the investigation into Simic’s digital communications following repeated failures to comply with court orders and what she described as “serious questions” about the candour and completeness of his discovery responses.
The ruling, issued in the District of Nevada on Friday (18 July), marks a major development in the years-long legal feud between PlayUp and Mintas, who was ousted from her role as US CEO in 2021 after a failed $450m acquisition by cryptocurrency exchange FTX.
PlayUp and Simic allege that Mintas sabotaged the deal by making disparaging comments to FTX executives.
Mintas, in turn, claims Simic was at fault and has countersued, accusing him of scapegoating her and misrepresenting her conduct to investors and the public.
PlayUp US CEO victorious in April
The former US CEO scored a major victory in April after the court dismissed all claims against her, while retaining her counterclaims against Simic for various wrongdoings including defamation, false light and breach of contract.
While the court has yet to rule on the core allegations, the latest order centres on Simic’s conduct during discovery, particularly his handling of a critical meeting document.
The court found that Simic failed to produce numerous documents in native format despite multiple prior orders, and highlighted one PDF in particular, notes from a 15 November 2021 meeting with FTX, as highly problematic.
According to the order, Mintas provided evidence that the PDF was altered and that Simic ignored a requirement to submit the file in its original format.
The judge wrote: “The pending motion lays the factual foundation to find that (1) the PDF of SIMIC000004 that Simic produced had been altered for litigation advantage, (2) Simic violated the Court’s order to produce the native version… and (3) Simic violated that order as a bad faith tactic to avoid confirmation of his evidence manipulation.”
Mintas had obtained an earlier version of the same meeting notes from PlayUp board member Michael Costa, who described it as “unedited from when they were written.”
This version materially differed from the version Simic eventually produced.
Throughout the proceedings, Simic and his lawyers gave shifting explanations for the discrepancies, at various points claiming the native Apple Notes file didn’t exist, that it had been lost, or that a Microsoft Word version was the true original.
Koppe was withering in her assessment of these contradictions: “The story portrayed by Simic and his counsel as to SIMIC000004 has been in constant flux, sometimes changing literally by the minute.”
Simic’s lawyers tried to exit case after hearing
The dispute took another turn when Simic’s law firm, Zumpano Patricios & Helsten (ZPH), filed a motion to withdraw as counsel just hours after producing the disputed document.
The firm cited an “irretrievable breakdown” in the attorney-client relationship and acknowledged this would delay the forensic examination if it were granted.
But the court denied the request, citing repeated past attempts by the same lawyers to withdraw during sensitive stages of the case. “None of the pertinent considerations militate in favor of allowing ZPH to withdraw as counsel at this time,” Koppe ruled.
“Allowing withdrawal when the forensic examination is pending will unduly delay further these already elongated proceedings.”
ZPH had previously attempted to quit in both March 2023 and April 2024, including once just days before Simic’s scheduled deposition.
In both cases, the firm either reversed course or failed to ensure timely replacement.
As part of the order, the court directed that Simic’s business devices, corporate email, Microsoft Teams data and any other relevant communications tools be turned over to a third-party forensic examiner.
The examiner will search for communications relating to FTX, Mintas and related keywords spanning from July 2021 to the present.
These keywords must include phrases “FTX,” “Humble Libretto”, “Alameda”, “Laila”, “Layla”, “Leyla”, “Leila”, “Mintas”, or “bitch” and the email addresses of anyone at FTX.
Simic must pay for forensic search
Simic’s legal team will be allowed to review the materials for privilege before production, but he must pay the full cost of the forensic process.
“Because the requirement for a forensic examination is the direct consequence of [Simic’s] failure to properly disclose communications and apparent withholding of information, [he] must bear the financial cost,” the judge wrote.
The court concluded: “Given the repeated misrepresentations, the Court has no confidence in the accuracy of the current representations made as to the document at issue.”
According to filings, if Mintas wins the case she, among other matters, is looking to recover the 11% PlayUp stake she was promised in her original contract.
This, on top of her existing 20% equity, would make her the business’ largest shareholder and place her in a position to try and take over the remaining business.