Top 11 Crypto Companies Face NY Class Action Lawsuit for ‘Unlawful Selling Of Securities'

In what is described as crypto’s own “Red Wedding” on April 3rd, a Manhattan federal court received eleven class lawsuits targeting seven top crypto companies and over 42 defendants across 16 countries across the globe. The plaintiffs, Roche Freedman –who also advocated against Craig Wright’s Satoshi Nakamoto bid and Bitfinex-Tether scandal – claim the defendants' issue and sell cryptocurrencies which are claimed to be unregistered securities.

However, as is the case with most of the class action suits, the process is expected to be painfully slow, compounded with the current slowdowns due to the CoronaVirus effects.

Over 11 class lawsuits implicate Binance, Block. one, BitMEX and others

In what is named after the epic scene from HBO’s TV series, Game of Thrones, “The Red Wedding”, several crypto companies face possible federal crimes in offering unregistered securities. Roche Freedman filed even separate class lawsuits to the federal courts in Southern District of New York implicating several exchanges and crypto companies including Binance, Civic, BProtocol, Status, Block.one, KayDex, Quantstamp, BiBox, TRON Foundation, KuCoin, HDR Global Trading (parent of BitMEX exchange).

OffShore, a lawsuit filing platform reported the case further showing 42 respondents were also individually mentioned in allowing unregistered securities including Block.one CEO Brendan Blumer and CTO Dan Larimer, Civic CEO Vinny Lingham, BitMEX founder Arthur Hayes, and Binance founder Changpeng “CZ” Zhao.

The lawsuit insider

According to the lawsuit, the defendants offered tokens failing to pass the Howey Test, which determines if an asset is a security under U.S Federal law. Furthermore, the lawsuit claims the exchanges lack broker licensing and may have been part of market manipulation crimes too.

With one state court has ruled against Telegram issuance of its GRAM tokens, the case may prove to be a big hole in the crypto market. However, there remains hope that the process may end up being settled with the Securities Exchange Commission (SEC) given the long and tedious process of a class-action lawsuit.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Lujan Odera
Lujan Odera
Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,511FansLike
2,795FollowersFollow
4,273FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today