Justin Sun’s Tron Files Motion to Dismiss Lawsuit on Security Violations in Federal Court
Tron Foundation has filed to dismiss a class-action lawsuit against them in a New York federal court according to a motion filed on Dec 15. The lawsuit claims that Tron violated securities regulations during its Initial Coin Offering (ICO) back in 2017; Tron managed to raise around $70 billion at the time.
In their defense, Tron now claims that the lawsuit against them is ‘fatally flawed’ and, in fact, not connected to the state of New York. The foundation notes that the lead plaintiffs did not participate in the 2017 ICO; they also filed the lawsuit two years after the TRX ICO was complete. The filing reads,
“Despite having not purchased during the initial offering or from Tron, plaintiffs attempt to form a nexus between their purchases and alleged marketing activities by Tron.”
The motion further highlights that the plaintiffs, in this case, acquired their TRX tokens through Binance, a secondary exchange. Consequently, it argues that the matter at hand is not an issue of a securities violation but secondary market settlements.
Tron also defended itself on a misleading whitepaper; the foundation stated that this was an afterthought by the plaintiffs.
“This claim was not even pleaded in the original complaint, and it is nothing but a litigation afterthought.”
Last but not least, Tron’s motion argued that the plaintiffs’ lawsuit did not allege any exposure to U.S clients during the TRX ICO in 2017. As reported earlier by BEG, this lawsuit was filed on Apr 3 alongside a couple of other actions against prominent players in the crypto field, citing violation through the sale of unregistered securities.
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