This is a summary of United American Corp. v. Bitmain Inc., et al. and is not legal advice.
United American Corporation (“United’’) is a blockchain company dedicated to social network posting technology mobile connectivity and cryptocurrency mining. United filed a complaint against Bitmain, Kraken, and other cryptocurrency companies alleging that they violated antitrust laws in connection with an alleged
“scheme by a tight-knit group of individuals and organizations to manipulate that cryptocurrency market for Bitcoin Cash.”
The complaint alleges that Bitmain engaged in unfair competition and utilized deceptive and unfair practices to manipulate the Bitcoin Cash and that such acts benefited Bitmain and was to the detriment of United and its stakeholders. United further alleged that the acts caused it to lose over $4 billion in value and forced the network fork. All in all, United alleges that the acts caused it and other co-defendants irreparable harm.
Bitmain then filed a motion to dismiss in opposition to the complaint, arguing that
“While the Defendants are attempting to dismiss the lawsuit by primarily alleging lack of evidence, their own statements and a mass of publicly available data clearly shows otherwise. This is an important juncture for the public blockchain and the cryptocurrency industry as we believe the industry must remain decentralized and beyond the control and manipulation of any individual or group in order to maintain the confidence and integrity of the network.
We challenge the Defendants to explain their actions under oath and justify why their actions have not violated US antitrust laws. Should any of the counts in our suit actually be dismissed, the complaint will be amended as appropriate. One way or another we intend to compel Mr. Ver, Mr. Chancellor and other co-defendants to provide depositions under oath in the US in the near future in order to shed some light on this alleged fraud”.
United responded and opposed the motion to dismiss, providing additional allegations to support the complaint. United alleged that Defendants explicitly stated that they coordinated and conspired with each other and that such evidence can be found in a YouTube video. The response also alleged that
“Defendants misrepresented to Plaintiff and the market that they would abide by the [Satoshi] Whitepaper and accepted standards and protocols.”
Bitmain also has the opportunity to reply and the court will then consider the motion. At this point, there are also other defendants that have not yet been served. How do you guys think this case could effect the greater bitcoin ecosystem if at all?