A Lone Tree man who last year settled claims of fraud levied by the Securities and Exchange Commission has become interested in cryptocurrency, according to his Denver Tech Center landlord.
Tyler Tysdal was sued on Nov. 6 by Denver-based Focus Property Group, which owns the building at 5500 Greenwood Plaza Blvd. as 5500 Greenwood LLC.
According to the lawsuit, Tysdal’s investment firm Titlecard Capital Group — which is also a defendant — leases space in the building, and that lease states that the space will “be used for general office purposes only and no other purposes.” It specifies that Focus must give consent before any “non-standard office equipment” is connected to the building’s power supply.
Focus alleges that Tysdal’s company installed numerous computer servers without permission.
“Upon information and belief, tenant is using the server farm in the premises in order to conduct a cryptocurrency mining operation in the premises,” the lawsuit reads. “The server farm installed by tenant in the premises, and tenant’s conduct of a cryptocurrency mining operation, are not general office use of the premises.”
According to Focus, the servers generate “an extraordinary amount of heat,” which has taxed the building’s HVAC system and “caused other neighboring tenants in the building to experience high indoor temperatures.”
Focus says the server farms are responsible for increasing its electric bills by $1,400 a month. The Law Offices of Theodore W. Brin is representing the landlord in the litigation.
Tysdal and Titlecard’s attorney, Tamera Westerberg of Wheeler Trigg O’Donnell, told BusinessDen last Wednesday that “the parties have agreed to settle their minor lease disputes and the case will be dismissed once the documents are signed.” Focus did not respond to a request for comment.
Tysdal, who has an MBA from Harvard, did not admit or deny the SEC’s allegations when he agreed to a $1.1 million settlement in September 2019. The federal agency had accused him of playing a role in “multiple schemes to defraud investors.”
Three months after the settlement was announced, Tysdal was indicted on 67 state criminal counts, most of them securities fraud. The alleged victims included multiple current or retired professional athletes, including Matt Cassel and Carson Palmer.