Class Action Lawsuits Filed Against 7 Crypto Companies

Class Action Lawsuits Filed Against 7 Crypto Companies

In New York, 11 class action lawsuits were filed on Friday against seven crypto exchanges, which represents a major strike against the industry.

The plaintiff is Roche Cyrulnik Freedman which had previously taken a legal action against self-proclaimed Bitcoin inventor Craig Wright.

The defendants are Binance, TRON Foundation, Block.one, BProtocol, Status, KayDex, Quantstamp, BiBox, KuCoin and HDR Global Trading.

The legal actions name top officials of the above firms, such as TRON Foundation CEO Justin Sun, Block.one CEO Brendan Blumer, BitMEX founder Arthur Hayes, and Binance CEO Changpeng Zhao.

The law firm accuses such crypto firms of violating the U.S. securities regulations through selling unregistered securities. In addition, it claims that the companies have exploited investors’ lack of awareness as regards the crypto industry. Roche also accuses the companies of hiding the obligation to register by promoting cryptocurrencies as utility tokens.

Legal actions against TRON, BitMEX

The individual complaints are different from each other. Roche suspects TRON Foundation of funding, marketing and distributing Tron tokens, in breach of the securities laws.

The lawsuit against HDR Global Trading, the operator of the BitMEX, claims that it has traded securities without obtaining a license to operate as an exchange. In addition, the law firm suspects BitMEX operator of price manipulation.  

TRON Foundation has acquired major blockchain companies and entered into significant partnerships with the aim of providing great value for the TRX token.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.