U.S District Court Summons OPSkins Group and WAX Over a Complaint Filed by Crypto Asset Fund
The U.S District Court for the Central District of California called upon OPSkins Group and Worldwide Asset eXchange (WAX) over an Initial Coin Offering (ICO).
The Crypto Asset Fund and affiliate Digital Capital Management made a complaint on the 12th of Aug against the video game virtual goods company OPSkins Group and WAX. However, the claim involved 12 charges such as fraud and the violation of the Securities Acts of 1933 and 1934.
The Crypto Asset Fund complained that it financed over $1.2 million worth of Ether (ETH) in a pre-sale of ICO by WAX, which they say it wasn’t registered by WAX with SEC (Security Exchange Commission).
After the investments by Crypto Asset Fund, about 1.85 billion tokens was released by WAX instead of the agreed 185 million. Furthermore, WAX later postponed the promised tokes to the Crypto Asset Fund.
WAX intended to create an illegal means of acquiring investment through illicit means – it never proposed to produce a functioning token, according to the complaints filed by Crypto Asset Fund.
Crypto Asset Fund further added that WAX
“effectively used the ICO process as a license to print money.”
It is essential to know that Crypto Asset Fund has asked for unstated compensation for lost profit and an order to ban OPSkins and WAX from involving in any form of gambling.
It’s still vague on the amount of money that was raked-in by the ICO put forward by WAX.
“It was reported that Defendants were the tenth largest ICO of 2018 with a fundraise of $68 million. However, in a November 30, 2017 press release, Defendants claimed that they raised ‘over $80 million’ from ‘thousands of participants’ in their token sale. OPSkins CEO and WAX President Malcom CasSelle later claimed in a July 18, 2018 article by PC Games Insider that in 2017 Defendants ‘raised over $150 million to launch the WAX platform,”
according to the complaint.
There are lots of legal actions against ICOs; most of these coin offerings have even been banned in some countries.