Cryptocurrency Isn’t The Future –  It’s Reality

Cryptocurrency Isn’t The Future –  It’s Reality

6 Most Recent Lawsuits Against Cryptocurrency ICO and Coins

6 Most Recent Lawsuits Against Cryptocurrency ICO and Coins
Image use under license by Evanto

So, what happens if your cryptocurrency investment goes wrong? What are the latest lawsuits against cryptocurrencies ICOs & Coins?

The majority of the buzz around cryptocurrencies focuses on the influence of laws, big price spikes, and the resulting gains. But it isn’t all sunshine and rainbows. Crypto trading and investments, like any other financial asset, may go awry.

Experts have often advised that consumers should not invest more than 5% of their wealth in cryptocurrency. Some even suggest that anyone investing money in cryptocurrency should be prepared to lose it all — overnight gains may swiftly turn into overnight losses.

Lets have a look at few examples.

1. Lawsuit Against BitConnect

Established in 2016, BitConnect was a digital asset and traded for bitcoin, the most valuable cryptocurrency in the world. According to the SEC’s lawsuit, BitConnect promised investors that it would profitably trade their bitcoin using an automated “trading bot” and that the currency would be locked up for four to ten months.

According to the SEC’s lawsuit, BitConnect eventually lost 92 percent of its value, and investors lost all or almost all of their money in the loan scheme. BitConnect has received thousands of dollars as an investment.

2. Binance, Italy

A class-action lawsuit has been launched against Binance, the world’s largest cryptocurrency exchange due to glitches by a group of investors. Lexia Avvocati, a legal and consulting firm, announced that it would sue Binance for trading losses incurred as a result of outages the platform experienced on various days, including the day Tesla announced its $1.5 billion purchase of Bitcoin.

The legal firm has launched a class action complaint against the cryptocurrency exchanges, claiming that “anomalies in the trading platform’s functioning” caused some inventors to lose money on futures. Futures are a form of derivative financial product that enables traders to purchase or sell a particular cryptocurrency at a fixed price at a future date.

The complaint might place Binance in a difficult position because if it grants the complainants’ claims, it may be forced to pay the same sum to all other investors. Winning a case like this, on the other hand, may free Binance from having to pay any compensation at all and create a new norm for the whole crypto sector.

Binance Exchange Details

3. A fraud lawsuit has been filed against South Korea’s largest cryptocurrency exchange

In Hong Kong, subsidiaries of the South Korean exchange Bithumb are accused of breach of contract, and its top executives are charged with fraud.

Bithumb is accused of acting dishonestly when it disclosed ambitions to launch an exchange in Thailand. Instead of launching a crypto exchange, BK Group used its announcement to encourage people to invest in the BXA coin, a virtual asset created by Chairman Kim Byung-gun, who had previously sought to take over the company.

Bithumb Exchange Details

4. Ripple’s future in the United States is uncertain as the lawsuit is made against SEC

The US Securities and Exchange Commission (SEC) has filed a lawsuit against Ripple’s XRP coin, which is one of the most significant and important cases against crypto firms.

According to the SEC, the firm, which manages one of the biggest coins by market capitalization, has raised over $1.3 billion through “unregistered, continuing digital asset securities offerings.”

View Ripple XRP Coin details here

5.The lawsuit against Block.one (To be resolve soon)

Block.one, the company behind the EOS token, said last week that it had agreed to pay $27.5 million to resolve a class-action lawsuit over its initial coin offering (ICO). The Crypto Assets Opportunity Fund filed a complaint against the blockchain business.

Both parties are now waiting for court clearance to begin the settlement payments.

View EOS Coin Details 

6. The SEC has charged the CEO of a cryptocurrency startup with conducting an unregistered initial coin offering (ICO)

The Securities and Exchange Commission (SEC) of the United States has announced a settlement with a business and its CEO for making false claims in connection with an unregistered initial coin offering (ICO).

In connection with an unregistered digital asset transaction, Loci Inc. has been charged with making “materially false” and misleading statements.

The warning was issued on the financial regulator’s official website, and it stated that the firm misappropriated investor cash and made misleading representations about the company’s revenues, staff count, and platform user base.

Join My newsletter!

All subscribers who also follow me on twitter are automatically entered into my free crypto coin random draws!

Get post & contest updates