Immediately 11 cryptocurrency companies, including Binance, BitMEX, KuCoin and Tron Foundation, were faced with class actions by investors accusing them of selling unregistered securities in the form of tokens. It is reported OffshoreAlert.
The lawsuits were filed on Friday, April 3, in the court of the Southern District of New York. They feature 42 defendants from the British Virgin Islands, Canada, Cayman Islands, China, Estonia, Hong Kong, Israel, Japan, Malta, Seychelles, Singapore, South Africa , Switzerland, Taiwan, USA and Vietnam.
The documents state that each of the participating companies sold such tokens either directly through the exchange through initial exchange offers (IEO), or in the form of initial offers of coins (ICO).
In the case of Binance, KuCoin, Block.one, Quantstamp, Civic and Tron Foundation, the lawsuits focus on ICOs and the sale of such tokens. The BitMEX exchange is accused of selling unregistered securities. The list also includes BProtocol, Status, KayDex, BiBox and HDR Global Trading and representatives of the companies themselves: Brendan Bloomer, Dan Larimer, Winnie Lingham, Changpen Zhao and others.
As emphasized, the tokens sold pass the Howie test to determine if they are securities or not. In addition, the people involved in their promotion made it clear that they expected profit in the future, although they positioned them as utility tokens.
According to OffshoreAlert, the lawsuits were filed through Roche Cyrulnik Freedman, a New York law firm that also stood behind the collective lawsuit against Bitfinex and Tether in October 2019. In addition, Roche Cyrulnik Freedman represents the interests of the late Dave Kleiman’s relatives case against Craig Wright, the self-proclaimed creator of bitcoin.
Found a mistake in the text? Highlight it and press CTRL + ENTER
subscribe to news Forklog