A New York court has dismissed class action lawsuits against five cryptocurrency projects accused of conducting unregistered ICOs and violating securities laws.
Previously, law firms Selendy & Gay PLLC and Roche Freedman have filed class actions on behalf of investors against cryptocurrency firms Quantstamp, Status Research, Civic Technologies, HDR Global Trading and Kaydex. They were accused of violating securities laws, causing material damage to investors by selling digital assets without the necessary licenses, manipulating the market, and providing investors with false information. However, on April 27, legal proceedings against these firms were dropped because the plaintiffs were unable to provide the court with convincing evidence of the damage caused to the investors.
“We are delighted that this long and grueling trial is finally over. All this time, the Civic remained confident in its correctness. This resolution of the dispute marks a victory not only for us, but for the entire digital currency industry, ”said Nancy Li, director of marketing at Civic Technologies.
Last year, similar lawsuits were filed against cryptocurrency exchanges Binance, Kucoin and Bitmex, as well as against the Tron project. These claims are still in force, but there is a possibility that the Tron case could end in his favor, as the complaint was filed in court after the statute of limitations expired. In addition, in December, Tron filed a motion to dismiss the “erroneous” claim, arguing that traders and investors did not report harm. They continued to buy TRX even after the US Securities and Exchange Commission (SEC) published guidance in April 2019 to help determine if a crypto asset is a security.
Tron’s petition indicates that the claimants should have read the project’s White Paper. Then they would see a warning that TRX is not a security, but government oversight or regulatory actions could affect Tron and TRX, including its price.
Investors have previously filed a class action lawsuit against Israeli cryptocurrency startup Bancor. In February, this claim was also dismissed by the court, as the plaintiffs were unable to prove the losses suffered. In addition, the proceedings against the Bibox trading platform were recently terminated, as the plaintiff filed claims for five cryptocurrencies that he did not personally acquire.
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