More investors in block.one’s EOS initial coin offering have launched legal action in an attempt to recover $200 million that was allegedly raised illegally. 

According to the plaintiffs, EOS’s ICO, which raised a record-breaking $4 billion, constituted an unregistered security offering by block.one – the development company that led the ICO. 

Despite the terms of the purchase agreements specifically prohibiting US investors from participating in the ICO, some US-based investors did participate, leading the Securities and Exchange Commission (SEC) to get involved. 

Block.one, which has offices in Hong Kong and Virginia, did not register the ICO in the US, either as a security or under the available exemptions, and denies it targeted US-based investors. 

However, the plaintiffs disagree, alleging the firm actively courted US investors – pointing to the fact that block.one announced itself at a May 2017 conference in New York City, and even purchased expensive ad space on a billboard in Times Square. 

In April, law firm Roche Cyrulnik Freedman also filed a number of class-action lawsuits against several crypto firms, including block.one. 

AYO.NEWS says:

The US is becoming a real problem for many crypto firms, with an avalanche of class action lawsuits from investors and plenty of heat from regulators like the SEC. Though they are unlikely to sink projects, their expense, time and negative press generated by long-drawn out legal actions is going to be a massive distraction from driving innovation and adoption.

Only yesterday we reported that Seychelles-based cryptocurrency derivatives exchange BitMEX, and its executives, are facing a lawsuit in California, for alleged racketeering, money laundering, wire fraud, and unlicensed money transmission. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

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