A former special adviser to the Department of Justice (DOJ) explains why his company has filed twelve class action lawsuits against some of the leading cryptocurrency companies.and how it will benefit the industry in the long term.
Jordan Goldstein, partner at Selendy Gay, a company that has teamed up with Roche Cyrulnik Freedman in 12 class action lawsuits against heavyweights in the crypto space. These include Binance (BNB), BitMex and Block.one. In the past, Goldstein has helped customers recover more than $ 25 billion.
Investors shouldn’t be afraid
Goldstein told Cointelegraph that his primary goal is to help investors who are allegedly misled by unregistered issuers of securities.. He firmly believes that these cases will benefit the industry in the long term:
“Bearing the cost of the litigation will force companies and issuers to be more careful with the rules when considering the new landscape after these litigation. And I think this is hopefully one of the benefits for blockchain and this sector in general is that investors shouldn’t be afraid to be the ones who buy and sell these securities. “
Becoming a major plaintiff has its advantages
Goldstein said there are significant advantages to joining these cases as the main plaintiff:
“Acting as the primary plaintiff gives someone the ability to lead the litigation and make important decisions regarding strategy and settlement decisions. If there are people who are interested in serving in this role, we are very happy to hear from to hear them. “”
The deadline for most of these cases ends on June 8th.
Goldstein does not believe that the crypto industry differs significantly from the financial industryWhere industry-wide misconduct led to the 2008 economic crisis. When bad players get out of control in an industry, everyone assumes that this behavior is acceptable. It also robs good players and makes them less competitive:
“I think that one of the healthy effects of these legal disputes will be to create a level playing field so that there is a kind of rule that applies to everyone. Issuers of digital tokens and those who defy the rules have no unfair advantage. “
A source familiar with these cases told Cointelegraph that litigation can take years.. Even if the courts rule in favor of the plaintiffs and grant monetary damages, Securing payments from non-US companies will be a challenge.
It remains to be seen whether these cases will have a positive impact on the industry. However, it doesn’t seem that the frenzy of the first coin offerings (ICOs) for 2017 will come back to life soon.
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