SolidX accuses VanEck of unfairly ending the partnership and secretly working to launch a Bitcoin ETF based on SolidX’s developments.
Global investment management company VanEck is facing legal action from former cryptocurrency startup SolidX over a Bitcoin ETF. At the end of December, VanEck filed a preliminary application with the SEC asking for approval to launch an exchange-traded fund (ETF) for Bitcoin.
In 2017, VanEck became the first company to apply to launch a Bitcoin ETF under the Investment Companies Act. In 2018, VanEck and SolidX joined forces and jointly filed to launch an ETF. However, following the withdrawal of the last joint application in September 2019, the two firms ended their partnership in August 2020. In SolidX’s legal complaint, the situation is described as “bad faith termination” of the agreement.
On December 31, 2020, VanEck announced a new application to launch a Bitcoin ETF. According to the lawsuit, documents filed by VanEck with the SEC suggest that the firm was “secretly working on its own product while officially collaborating with SolidX.”
“Using SolidX’s work and work product to compete with it is bad in itself, but VanEck’s SEC filing could have been called plagiarism in any other context. The structure of VanEck’s proposed Bitcoin ETF is essentially identical, or nearly identical, to the structure for which SolidX requested SEC approval. ”
Plaintiff also claims that “VanEck began to announce products that compete directly” with SolidX peers within weeks of the termination of their agreement, and that VanEck “was unable to launch [упомянутых продуктов]by not working against the interests of SolidX, by remaining its business partner. ”
SolidX says VanEck and its “credibility” as an ETF issuer influenced the decision to cooperate. At the same time, VanEck “practically did not work with BTC” and hired SolidX to gain experience in working with cryptoassets.