Blue Ocean Capital Allegedly Misleads Investor to Buy $2 Million Worth Of MCash Cryptocurrency
Lijun Sun who is a citizen of China and a resident of California claims that he had transferred upwards of $2 Million to buy unknown crypto called MCash Token. He says that the documents that were presented to him about MCash did not accurately represent the token or the terms of the purchase. He learned about the terms after the purchase.
According to the official report, the following is the complaint registered.
“Plaintiff Lijun Sun (“Plaintiff”) makes this Complaint about violations of Sections 10 and 20 of the Securities and Exchange Act of 1934 (the “Exchange Act”), Securities and Exchange Commission (“SEC”) Rule 10b-5, and Sections 12 and 15 of the Securities Act of 1933 (the “Securities Act”), and for common law fraud under New York law, and alleges as follows based upon personal knowledge with respect to his own acts, and upon information and belief as to all other allegations.”
According to Sun, the company behind this fraudulent transaction, Blue Ocean Capital, did this intentionally. Blue Ocean Capital is a Dutch early stage venture capital firm that invests in hi-tech opportunities with a focus on IT technology and data. He is entitled to recission of his investment, along with compensation for damages worth $6 million. The lawsuit, which was filed in New York federal court, names company president and CEO, Antony Liu, and Mengxian Zhang as defendants.
The filing claims:
“Not only was the MCash Token not properly registered with the U.S. Securities and Exchange Commission (SEC), but more importantly, in connection with selling the MCash Token, Defendants made numerous misrepresentations and omissions that induced Plaintiff to invest $2 million.”
Even though the volume of scams in the crypto industry has gone down significantly, we still see stories like these surfacing. If you do not want to be a victim of such scams, take a look at our comprehensive list of scam methods that every newbie in the industry should know.