Attorneys representing investors in BProtocol Foundation, the parent company of the decentralized liquidity network Bancor, They are demanding that the case be heard against the blockchain company in the United States.
According to court records filed in the southern borough of New York on November 2, Timothy C. Holsworth’s attorneys, The lead plaintiff in the class action lawsuit against BProtocol argued that company executives “The repeated and extensive contacts with the United States” to commercialize the Bancor Network Token (BNT) made it the right place.
The lawyers of BProtocol co-founders Eyal Hertzog, Yehuda Levi, Guy Benartzi and Galia Benartzi previously had one Motion that a court outside the US would be better placed to rule the case because of the “international” nature of the lawsuit. The legal team suggested Israel’s “strong legal system” as the most appropriate place to monitor the case, given that the blockchain company has offices in the country.
“The defendants have (and cannot) show that this tribunal is an inconvenient forum” explained the Holsworth legal team. “The defendants say in passing that Israel is the most appropriate forum, but they do not provide any supportive details.”
The BProtocol Foundation is one of seven cryptocurrency companies to stand in New York courts after a series of lawsuits filed in April. These lawsuits allege that several exchange and cryptocurrency issuers sold unregistered securities without the approval of stockbrokers and, in addition to several of them, manipulated the market They have selectively withheld information about the sale of their tokens as securities from their investors.
In this special case Holsworth claims the blockchain firm has violated US securities laws by “promoting, offering and selling” its BNT tokens since June 2017. Monday’s court files indicate that the legal team is ensuring that BNTs are securities subject to the Securities Act of 1933 because they are centralized ERC-20 tokens.
“ERC-20 tokens have no use when issued, but derive their value from the hope that the issuer, in this case Bancor, will keep its promise to create a use.”
“A reasonable investor would not have been able to correctly deduce and argue that BNTs were securities until the SEC released a detailed analysis of digital assets on April 3, 2019 at the earliest, indicating that BNTs and other similar digital tokens were” investment contracts “and thus about securities”, The plaintiff’s lawyers testified. “The defendants kept the nature of BNT secret and concealed in a ‘white paper’ that they issued to potential buyers.”
Cryptocurrency issuers Block.one, Quantstamp, KayDex, Civic, Status, and the Tron Foundation have been named in similar class action lawsuits. like exchange Binance, KuCoin, BiBox and BitMEX. There are many ongoing disruptions caused by the COVID-19 pandemic and the establishment of the appropriate jurisdiction for several of these companies that are based outside of the United States and need to be addressed through the United States Hague Convention.