Traders Domain Clawback Lawsuit Targets Brandon Steven Over $150,000 Withdrawal
The court-appointed Receiver for Traders Domain has filed a clawback lawsuit against Kansas businessman Brandon Steven. The case seeks to recover funds allegedly withdrawn from the collapsed investment platform before its downfall.
The lawsuit was filed on May 14, 2026, in Kansas as part of the ongoing effort to recover money for victims of the Traders Domain scheme.
Background of the Traders Domain Case
Traders Domain was a non-MLM Ponzi scheme operated by Ted Safranko. The platform collapsed in late 2022 after attracting investors with promises of trading returns.
Authorities believe the collapse also affected OmegaPro, an MLM crypto Ponzi scheme that allegedly directed investor funds into Traders Domain.
In late 2024, the U.S. Commodity Futures Trading Commission (CFTC) filed an enforcement action against Safranko and several insiders linked to the operation.
As part of the legal proceedings, a federal court appointed a Receiver. One of the Receiver’s main responsibilities is recovering funds from investors who allegedly received more money than they originally deposited.
Who Is Brandon Steven?
Brandon Steven is a Wichita, Kansas-based entrepreneur. He describes himself as a Kansas-born businessman and family man.
Steven co-owns Steven Enterprises LLC with his brother. The company operates several businesses, including Brandon Steven Motors, Genesis Health Clubs, and 65 Steakhouse. It also owns the Wichita Thunder hockey team.
Receiver Seeks Recovery of $150,000
According to the amended complaint filed on June 11, 2026, Brandon Steven allegedly withdrew $150,000 from Traders Domain on September 9, 2022.
The Receiver also states that investigators found a communication from Mike Sims referencing a $100,000 wire transfer from Steven to Traders Domain.
However, the Receiver says the transaction could not be independently verified. Despite requests, Steven allegedly did not provide documentation supporting the transfer before the lawsuit was filed.
The complaint argues that the withdrawn funds were not legitimate investment profits. Instead, the Receiver claims the money came from pooled funds belonging to defrauded investors.
Settlement Attempts Before Litigation
Before filing the lawsuit, the Receiver’s legal team contacted Brandon Steven to resolve the matter without going to court.
According to the complaint, Steven declined to return any of the funds.
The Receiver is seeking repayment of the full $150,000. However, the amount could be reduced to $50,000 if Steven provides evidence confirming the alleged $100,000 transfer.
Brandon Steven Challenges the Claims
On June 23, 2026, Brandon Steven filed his response to the amended complaint.
In his filing, Steven challenged the validity of the underlying CFTC enforcement action. He also denied withdrawing $150,000 from Traders Domain, despite the Receiver presenting Coinbase transaction records as supporting evidence.
Steven further argued that he acted in good faith when receiving the funds and should not be required to return them.
Settlement Submitted for CFTC Approval
On July 15, 2026, the court received an email from both parties stating that a settlement agreement had been submitted to the CFTC for review and approval.
If approved, the settlement could resolve the clawback dispute without further litigation.
What Happens Next?
The court is now waiting for the CFTC to review the proposed settlement.
Until a decision is made, the Brandon Steven clawback case remains pending as part of the broader Traders Domain recovery process.
