On August 28, 2019, the Superior Court of California for the County of San Francisco granted the motion of Tezos Stiftung (“Tezos”) to quash service of summons for lack of personal jurisdiction over the plaintiff’s claims. The putative class action complaint alleged that Tezos violated Sections 12(a) and 15 of…
On July 25, 2019, the SEC issued its second no-action letter in connection with a token sale to Pocketful of Quarters. Pocketful of Quarters is a company founded to address “fragmentation” of in-game credits and currencies in the video game industry through a centralized platform built with blockchain technology. That…
On June 21, 2019, the U.S. District Court for the District of Connecticut certified a class of plaintiffs alleging violations of the Exchange Act and the Connecticut Uniform Securities Act in connection with their investments in products of GAW Miners, LLC, and ZenMiner, LLC. GAW Miners and ZenMiner “purchase[d] virtual…
On June 4, 2019, the SEC filed an enforcement action in the U.S. District Court for the Southern District of New York against Kik Interactive, Inc. (“Kik”) for violation of Sections 5(a) and 5(c) of the Securities Act for the sale of unregistered securities. The SEC seeks a permanent injunction,…
On April 24, 2019, the New York Attorney General filed a petition in New York state court, alleging that Bitfinex (i.e., iFinex, Inc., BFXNA Inc., and BFXWW Inc.) and Tether (i.e., Tether Holdings Limited, Tether Operations Limited, Tether Limited, and Tether International Limited) hid a loss of more than US…
On April 24, 2019, the U.S. District Court for the Northern District of Georgia granted in part and denied in part a motion to dismiss a complaint alleging that the controlling shareholders of FLiK, a company designed to create an online distribution platform for entertainment projects, violated Sections 12(a) and…
Bittrex, Inc. (“Bittrex”) is a US-based company that owns and operates one of the world’s largest cryptocurrency exchanges. Bittrex’s digital asset exchange platform allows approximately 1.67 million global users to trade over 200 cryptocurrencies. Bittrex offers two separate platforms, Bittrex and Bittrex International. The former is designed for use by…
On March 31, 2019, the U. S. District Court for the Southern District of New York denied a motion to dismiss a putative class action complaint alleging that ATBCOIN LLC (“ATBCOIN”) and its co-founders and officers (Edward Ng and Herbert W. Hoover) violated Sections 12(a) and 15 of the Securities…
On February 8, 2019, the U.S. District Court for the Southern District of Florida granted in part and denied in part the plaintiffs’ motion for summary judgment dismissing a putative class action complaint alleging (among other things) that Monkey Capital, LLC and Monkey Capital Inc. (collectively “Monkey Capital”) violated Sections…