- Investors filed a class action against cryptocurrency platform Block.one for violation of the Securities Act of 1933 and Exchange Act of 1934.
- Moreover, the plaintiffs also claimed that Block.One did not register the EOS tokens as per federal securities law.
- The investors who purchased the EOS tokens between June 26, 2017 until the present have filed it.
Investors filed a class action against cryptocurrency platform Block.one for violation of the Securities Act of 1933 and Exchange Act of 1934. Further, the Plaintiffs have claimed that the company deceived them by an illegal initial coin offering that gained over $4 billion to the company. However, it left the investors with a free asset that was virtually useless.
No registration found of Block.one’s EOS tokens
Moreover, the plaintiffs also claimed that Block.one did not register the EOS tokens as per federal securities law. Adding to this, they alleged that the securities issued were false and misleading prospectus.
The filing of the lawsuit is in the United States District Court for the Southern District of New York. The investors who purchased the EOS tokens between June 26, 2017 until the present have filed it.
Besides this, Block.one is facing second legal action over its ICO. In 2019, the company agreed to a settlement with the Securities and Exchange Commission for $24 million. The new complaint creates a big question for Block.one for cheating global investors with the biggest of all crypto frauds.
One of the biggest of all crypto frauds
Established in 2017, Block.one runs its operation in Virginia and Hong Kong and its registration is in the Cayman Islands. Within a year the company has sold around 900 million EOS tokens by potential marketing to investors of the US and other countries.
Furthermore, the lawsuit depicts that the company’s fake efforts result in a successful scheme to defraud investors. The plaintiffs have sought certification as a class action for this lawsuit.
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