We believe in transparency, especially when the conversations get uncomfortable. As some of you have asked for more information about a civil lawsuit involving our CEO, Phiton Nguyen, we’ve taken the time to review the official court records and summarize them in plain language.
This post explains what the case was, what it wasn’t, and why it has no connection to Puffy or our operations.
What Was the Case?
In December 2016, a lawsuit was filed in Orange County, California by a woman named Sarah Rhee. The case was titled:
SARAH RHEE VS. PHITON NGUYEN, and Others
Case ID: 30-2016-00895164-CU-BC-CJC
Type: Civil – Breach of Contract/Warranty
This was a civil lawsuit, meaning it was a financial or contractual dispute between individuals—not a criminal fraud case. No one was arrested. No one was charged with a crime.
What Was It About?
The dispute was centered around a real estate investment. According to court filings, Sarah Rhee had entered into a business partnership with the defendants, including Phiton Nguyen, with the goal of investing in property. Later, the relationship fell apart—Rhee claimed she wanted her money back, but the group wasn’t in a financial position to return it at that time.
She filed a breach of contract lawsuit, arguing that the group had failed to fulfill their obligations.
What Was the Outcome?
After years of legal back-and-forth, in January 2022, the case was fully settled and recorded as:
Acknowledgment of Full Satisfaction of Judgment
This means that both parties reached a financial settlement—and Sarah Rhee confirmed that the case was resolved in full. There are no ongoing legal actions. It’s done.
In California, this type of document officially closes the case and releases any outstanding financial obligations from public lien records.
Was This Fraud?
No. There was never a criminal charge or fraud conviction involved in this case.
The term “Phiton Nguyen fraud” has been thrown around in online forums, but based on court records:
This was a business dispute, not a scam.
The case ended in a settlement, not a judgment of wrongdoing.
The matter was fully resolved with a legal acknowledgment that all claims were satisfied.
It’s important to understand that in civil court, people often settle to avoid drawn-out legal fees—not necessarily because they did something wrong.
Why Does This Matter Now?
We understand how, especially in the wake of our March 2025 cybersecurity breach, people may draw a connection between this old case and what happened on our site.
But we want to be very clear:
The breach was caused by a third-party contractor’s malicious code. It had nothing to do with this civil case from 2016 or with Phiton Nguyen’s personal history.
We also want to be honest that we understand why this may raise questions. That’s why we’re opening our books on both fronts.
What This Means for You
This lawsuit had nothing to do with Puffy. It happened before Puffy was founded.
Phiton Nguyen was not convicted of any crime.
The case is fully closed and resolved as of January 2022.
We’ve chosen to be transparent, even when it’s uncomfortable, because you deserve the full story.
Still Have Questions?
If you want to inspect the documents yourself:
If you're still unsure, our support team is always available to walk you through our security steps, legal position, or any concern you have. We’re not hiding behind lawyers—we’re showing up with facts and accountability.
— The Puffy Team