Investors File Class Action Against Issuers, Exchanges Over Sale of Billions of Dollars

Investors File Class Action Against Issuers, Exchanges Over Sale of Billions of Dollars

Investors have filed a class-action suit in federal court against seven cryptocurrency issuers and several exchanges, alleging they sold billions of dollars in unregistered assets in breach of U.S. securities legal guidelines.

Investors File Class Action Against Issuers, Exchanges Over Sale of Billions of Dollars

The 11 suits, registered Friday in U.S. District Court in Manhattan, additionally name executives of the companies. The defendants embody crypto issuers Block.one and Tron, and exchanges Binance and BitMEX.

BitMEX stated it was aware of the suit and was reviewing it, refusing to remark further. Tron and Binance didn’t instantly respond to requests for comment.

The suits blame the issuers and exchanges for selling digital assets without registering them with federal or state regulators and stated the exchanges benefited financially from listing the unregistered assets. For instance, the suit against Binance stated that the exchange collected money fees from issuers, usually exceeding $1 million, to list their assets.

The buyers stated that BitMEX, along with selling unregistered securities, additionally manipulated the cryptocurrency market for its own benefit.

Selendy was earlier a lead attorney suing banks on behalf of the U.S. government over mortgage-backed securities.

Block.one in September 2019 agreed to pay a $24 million civil fine to settle claims by U.S. regulators that it sold unregistered assets worth several billion dollars from June 2017 to June 2018.

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