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Another class action lawsuit against Block.One condemns dirty deals during the EOS ICO

May 19, 2020

According to a complaint dated May 18, more investors are trying to get back the funds invested in the original coin offering for EOS, which amounted to $ 4 billion in cryptocurrency.. The plaintiffs’ lawyers are claiming more than $ 200 million of this illegally collected money.

Conflict with US securities law and investors

The complaint alleges that EOS was an unregistered offer of securities from block.one. Block.one is the development company that led the ICO for EOS, which many saw as a form of investment in the company.

The language in EOS’s pre-sale purchase contracts prompted investors in the United States not to participate in the fundraising round. This was an attempt to avoid conflict with the Securities and Exchange Commission (SEC). Block.one has not recorded the offer in the USA as a value or under the exceptions of the securities registerAs a result, they relied on their measures to completely bypass U.S. investors in order to comply with the U.S. regulator.

Another class action lawsuit against Block.One condemns dirty deals during the EOS ICO
Another class action lawsuit against Block.One condemns dirty deals during the EOS ICO

However, some US investors took part in the ICO and block.one still met with the SEC. In September, block.one approved the commission for $ 24 million.

New accusations of actively attracting investors

The new lawsuit claims that the company, which has offices in Hong Kong and Blacksburg, Virginia, knowingly and deliberately sought US investors:

“In order to increase the demand for EOS securities, the defendants aggressively wooed investors in the United States from 2017 to the present day. Block.one was first announced at a conference in New York City in May 2017 and has highlighted its arrival with costly advertising space on a Times Square poster. “

On how much investment actually came from the United States. The United States, James Koutoulas, one of the plaintiffs’ lawyers, told Cointelegraph that they “estimate a minimum of 200 million losses in the United States.”

The complaint also rejects Block.one’s claims that you’re working on decentralization as wrong.

However, this doesn’t seem to be the end of the story. In early April, law firm Roche Cyrulnik Freedman filed a series of class action lawsuits against a number of crypto companies, including block.one, based on similar allegations. The two cases will likely have to compete to be named senior lawyers – effectively the lead over the lawsuit.

Cointelegraph contacted the Block.one legal team but had received no response at the time of printing. This article will be updated when a response is received.

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