- On April 3, 11 class action lawsuits against cryptocurrency companies that alleged the sale of unregistered securities were filed with the Southern District of New York.
- The lawsuits were filed by Roche Freedman, a US law firm that showcases its speciality in resolving complex and high-stakes legal disputes.
On April 3, 11 class action lawsuits against cryptocurrency companies that alleged the sale of unregistered securities were filed with the Southern District of New York, according to a source from OffshoreAlert. It was reported that the filing took place at the federal court in Manhattan against 42 parties.
The lawsuits were filed by Roche Freedman, a US law firm that showcases its speciality in resolving complex and high-stakes legal disputes. It is known to represent the interests of late Dave Kleiman’s family in an on-going dispute with Craig Wright. The dispute arose after Bitcoin supporter Craig Wright received a lawsuit from the inheritors of his former business partner Dave Kleiman. The case claimed that Craig Wright illegally swindled Dave Kleiman’s 1.1 million BTC. In a recent hearing, Craig Wright received orders to pay the litigation costs for a total of $ 165,000 of the other party.
Plaintiff’s Filed Market manipulation lawsuit against Bitfinex-Tether
In October 2019, the company also filed a class action lawsuit against iFinex, Bitfinex, Digfinex, Tether, Crypto Capital alleging $1.4 trillion damage. This lawsuit alleged that the crimes committed by Tether, Bitfinex, Crypto Capital included bank fraud, money laundering and payment transactions that were made as a result of the illegal actions also conducted an unlicensed business for transfer of money and fraudulent operations.
Cryptocurrency exchanges that fall in the trap of filings include Binance, KuCoin, BiBox, HDR Global Trading (the parent company of the BitMEX exchange). The lawsuits against these crypto-exchanges alleged that they conducted unregistered sales of securities through engagement in market manipulations. The lawsuit also alleges that token issuers did not confront to the investors that their tokens were insecurities, hence hiding the truth from them.
Cryptocurrency Under Lawsuit Radar
The tokens that fall under the category of being claimed as securities include Bibox (BIX), Eos (EOS), Bancor (BNT), Status (SNT), Quantstamp (QSP), Kyber Network (KNC), Tron (TRX), Funfair (FUN), Icon (ICX), OmiseGO (OMG ), ETHLend (LEND), Aelf (ELF), TomoChain (TOMO), and Civic (CVC).
Besides these, claims are also filed against the issuers of cryptocurrencies Block.one, Quantstamp, KayDex, Civic, BProtocol, Status and Tron Foundation making the total of claims indicated to 42 accused from 16 different countries.
The case is likely to provoke the court’s jurisdiction to look in the matters of decision against non-US parties on the work of crypto-exchanges and also the token issuers for exclusion of non-US investors from their platforms, as well as in the matter of the regulation of crypto assets as securities.