In this article, we will review some of the famous and glorious lawsuits filed against companies claiming to be secure crypto fund markets.
Our ICO law blog was created as a public service to provide free information and insight into the recent and upcoming lawsuits against initial coin offerings (ICOs). Our lawyers write the blog to keep you up-to-date on what is happening in the ICO world, including legal updates.
The world of cryptocurrency has been shaken up recently by several lawsuits against companies that were operating in the space. The lawsuit has alleged security fraud, and even some of the most well-known cryptocurrencies are accused of fraud.
What Are the Most Recent Lawsuits Against ICO Companies?
The most recent ICO ban is in China. It was a two-pronged attack. The government of China banned all ICOs from the mainland. Then, the U.S. government (led by the SEC) banned ICOs that are considered securities offerings, like the offering of “utility tokens” that have no value outside of the company. This has caused a lot of uncertainty and confusion around the industry and is a major blow to many ICO projects.
However, it also allows us to learn from the mistakes of others and hopefully avoid making the same mistakes ourselves. One of the biggest problems that we have encountered over the past year is people who are promoting their ICO without doing any work on the project itself. They just tell potential investors to join their Telegram group or follow them on Twitter or Facebook and then make promises about what the ICO will do. Some even go as far as to promise that they will release their whitepaper at some point in the future.
How Has the Law Against ICO Companies Been Changed?
We will be updating this page with the latest changes to the law. Here is a point of current changes in the law that affect ICO companies:
- The government has changed its stance on whether or not it is legal for an ICO company to hold shares in another UK-based company.
- The government now says it is illegal, but ICO companies can still offer services in other jurisdictions without restricting their UK-based activities.
- The government has now changed the rules for how much information it needs from ICO companies when conducting a review.
Instead of only needing to know the name and address of the ICO company, the government now requires all documents related to the company’s activities. The government has updated the rules for when ICO companies must pay taxes in the U.K. However, the government requires companies that sell tokens to investors to register with HMRC as an investment company. The government can now ask for payment from ICO companies if they have failed to pay any taxes during the year. The government has introduced new rules for ICOs raising money to develop blockchain technology.
THE CRYPTO INDUSTRY’S LITIGATION BOUTIQUE FILED 11 CLASS ACTION LAWSUITS AGAINST VARIOUS DIGITAL CURRENCY FIRMS
Roche Cyrulnik Freedman’s New York office is busy as lawyers currently face multiple, highly complex cases arising from cryptocurrencies. Bloomberg Law, a news agency, was referred to recently as a “litigation boutique” focusing on crypto-related litigation issues. Selendy Gay PLLC is also leading in this lawsuit against Bitcoin. In the cases filed by Roche Cyrulnik Freedman before this week, there were two cases: a billion-dollar suit against Tether Limited and the Kleiman v. Wright case. In retaliatory litigation, the defendants claim Craig Wright has stolen billions from bitcoin.
Which Country Is More Likely To Take Legal Action Against ICO?
There are two countries that are more likely to sue an ICO. Both of them are the U.S. and Russia. This is because both countries have a history of going after ICOs and blockchain startups. The U.S. has been quite strict when it comes to cryptocurrency and ICOs.
As such, the U.S. government may sue some ICOs, and the U.S. government can claim that a certain ICO was used for illegal activities or breached U.S. securities laws. As per recent reports, the U.S. Securities and Exchange Commission (SEC) is currently looking into how to regulate initial coin offerings. The SEC is working towards this because of the potential risks associated with ICOs. The SEC has also taken action against certain companies involved in ICOs. For example, the SEC sued one company called Paragon Coin. Paragon Coin conducted an ICO in June 2017. However, Paragon Coin had not registered its ICO with the SEC.
FAQ’son Lawsuits
- What are the reasons why ICOs are in trouble these days?
ANS: Let’s start with a quote from the infamous Ethereum co-founder, VitalikButerin: “I think the biggest problem we have is that people don’t understand what money is.” The problem with money is not its complexity but its centrality. Money is used to perform an essential function in any market economy, becoming the most important factor in any economic system. That’s why we can say that the global economy has become a monetary economy.
- Why are ICOs considered as a fraud?
ANS: The cryptocurrency market is a dynamic one. Many new ICOs pop up every day, and they all claim to be the next big thing. They all promise to revolutionize the way people do things in the future. Some ICOs have a legitimate business plan, while others are just scamming people. The truth is that there is no easy way to tell which ones are legitimate and which ones are scams. However, we have seen some ICOs that are so bad that they are considered frauds.
- What are the major issues with ICOs?
There have been numerous high-profile ICO failures, many of which have occurred in China. The ICO market is booming, with new projects coming out every day. Many of these projects are scamming investors, and the public is becoming increasingly aware of this. While most ICOs are scams, a few have created real value for investors. The key to a successful ICO is to ensure you’re creating a solution to a real problem and that a real product or service backs your token.
