Class Action Lawsuit Against Nano (XRB) Thrown Out by New York Judge
Nano (XRB), an altcoin of the crypto world, was recently the subject of class action lawsuit, which was filed in April. The filing was only on behalf of one person – American Alex Brola – who had made a purchase on December 10th last year of $50,000 worth of XRB. In the lawsuit, which came from the Silver Miller law firm, Brola accused the company of violating securities laws with unregistered securities. He also claimed that the company was not properly representing how reliable the BitGrail exchange was, based on the 17 million XRB that was stolen eight months ago.
Brola’s demands included that Nano be required to “rescue fork” the missing XRB “into a new cryptocurrency in a manner that would fairly compensate the class of victims.” The only plaintiff actually named is Brola, but the lawsuit indicated that Silver Miller planned to coordinate with “at least hundreds if not thousands of putative Class members.”
After the hack, there’s been accusations from both BitGrail and Nano, with each one saying the other side is responsible for the theft that accounted for approximately $187 million in XRB. The CEO of BitGrail, Francesco Firano, said at the time that “it’s impossible to refund the stolen amount.
The XRB team filed a motion to dismiss the case in September, saying that their token cannot be considered a security because there’s been no money in exchange for the insurance, and has no investors. The motion also said:
“Nano’s value does not derive from a group of managers or executives managing other people’s property; rather, Nano’s value is derived from its utility or potential utility as a currency.”
Brola ended up voluntarily withdrawing the lawsuit. Peters Schoolidge, the lead defense counsel, told Law 360 that “the plaintiff withdrew the complaint because the case lacked merit.” By October 22nd, based on the most recent court documents filed, New York Judge Nina Gershon decided to dismiss the case. However, these documents did not include the reason for dropping the suit.