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Bailey McCann, Opalesque New York: In September, the SEC ordered blockchain technology company Block.one to pay $24 million for conducting an unregistered initial coin offering (ICO) of digital tokens that raised the equivalent of several billion dollars over approximately one year. The SEC said that the tokens were securities that had to be registered. The SEC's argument hinged on the fact that several investors were from the US and that the company had not sought an exemption from registration. Now, two law firms are bringing a class action lawsuit against 11 of the worlds largest digital asset exchanges and token issuers - including Block.one - for roughly the same thing.
The lawsuits name as defendants crypto-asset exchanges Binance, Bibox, BitMEX and KuCoin, as well as seven issuers of digital tokens: Block.one (EOS), Tron (TRX), Bancor (BNT), Civic (CVC), Kybercoin (KNC), Quantstamp (QSP), and Status (SNT), in addition to numerous company executives.
"The cases allege that exchanges and issuers failed to comply with federal and state securities laws intended to protect investors from unscrupulous behavior in the rush to capitalize on this enthusiasm," said Kyle Roche, a lead partner on the cases.
The attorneys claim that exchanges profited handsomely from listing these digital tokens on their platforms. In addition to receiving fees for each transaction performed on its exchang...................... To view our full article Click here
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