Helbiz Inc. faces a class action lawsuit against investors for its plan to destroy the smart contract underlying its ERC-20 token, HelbizCoin (HBZ). The electric scooter company initially claimed it had raised nearly $ 40 million for a billed cryptocurrency to change the transportation industry in 2017.
In a July 6 memorandum filed by the plaintiffs to substantiate their application for injunction and injunction against the company, Investors claim to represent around 20,000 people who are now facing the permanent destruction of their private property.
The plaintiffs allege that HBZ orchestrates the destruction of its token in order to “close the books on liability for cryptocurrencies and make room for the issue of shares in a[Initialpublicoffering[ofertapúblicainicial[Börsengang[ofertapúblicainicial]]Initial public offering. “
HelbizCoin investors face token destruction
As HelbizCoin plans to terminate the HBZ-based smart contract, The order is to prevent the accused from “destroying the computer code that allows it [HBZ] exist. “
The memorandum states that The destruction of the contract would involve “an invasion and transformation of personal property (at least)”.
The plaintiffs also claim that “The risk of personal property destruction is a well-established basis for an injunction. “Emphasize that once the contract was “destroyed […] it can never be restored. “
The defendants have alleged that the contracts are not controlled by “HBZ Systems PTE LTD”, but the plaintiffs allege that such representation is “wrong”.
Electric scooter company plans to go public
The Italian-American company announced plans to go public in June 2019. In the same month, the Italian Minister of Transport allowed micromobility companies to operate in cities that participated in an e-scooter test.
However, The plaintiffs allege that the IPO went at the expense of HBZ investors and accuse the accused of “distancing themselves from the currency because its value has fallen by more than 99%”.
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