Altcoins Talks - Cryptocurrency Forum
Learning & News => News related to Crypto => Topic started by: PRIBO247 on January 08, 2019, 10:19:26 PM
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A class action lawsuit that was filed in April of 2018 has
commenced against the creators of the Nano ( NANO)
cryptocurrency, in which the plaintiffs allege that developers
“violated federal securities laws.” The lawsuit is being handled by
Silver Miller Law and Levi Korsinsky, LLP, both US-based firms
specializing in securities fraud and/or investment loss.
Specifically, the suit claims that developers of Nano - which was
previously called “RaiBlocks” before a rebrand earlier this year -
“recklessly” encouraged plaintiffs to buy the cryptocurrency on a
little known Italy-based exchange called BitGrail, which at the
time hosted most of RaiBlocks’ trading volume.
BitGrail (now apparently non-functional ) claimed to be hacked last
February, but was generally accused of conducting an exit scam .
The event caused the value of then-RaiBlocks to plunge 20% in
price. Almost $200 million worth of RaiBlocks tokens were either
stolen or removed from the exchange.
Notably, the founder of BitGrail Francesco Firano asked the
RaiBlocks(/Nano) developers at the time to hardfork the currency
in order to return users’ funds to them, à la the Ethereum hardfork
which birthed Ethereum Classic. The developers refused.
However, the current lawsuit formally requests that Nano
developers conduct such a “‘rescue fork’ or some other procedure”
in order to reimburse burned investors.
Securities Violation
There are altogether eleven charges brought against the team, two
of them being often-cited violations of Sections 12(a)(1) and 15(a)
of the US Securities Act of 1933 .
The filing claims that “the success of the investment opportunities
and any potential returns thereon were entirely reliant on
Defendants’ ability to maintain and expand the functionality and
popularity of [RaiBlocks/Nano], thus providing financial returns to
investors.”
Whether or not - and which - cryptoassets are considered
securities under US law is still a murky and inchoate issue.
Although at least two of the best known digital assets, Bitcoin and
Ethereum, have been grandfathered in as non-securities, perhaps
the next-best known one - XRP - is still languishing in legal limbo.
https://www.cryptoglobe.com/latest/2019/01/