New York-based firm Roche Cyrulink Freedman has filed a lawsuit case against 11 cryptocurrency companies last Friday as they were alleged to selling unlawful securities that were hidden through ‘tokens’.
Offshore Alert was the first one to report the development where 11 cryptocurrency companies were involved in the case. Among the companies who are tagged in the case were Binance, Block.one, Bitmex, Tron, KuCoin, Quantstamp, Bibox, KayDex, Status, BProtocol and Civic.
The lawsuit case stated that these companies took advantage of the lack of information from the market and industry to sell illegal securities to the people in the United States.
Once they sold the ‘tokens’, the companies who were aforementioned claimed that it is not necessary to register it under the country’s securities which in turn illegal as these ‘tokens’ should be under the watch of US Securities and Exchange Commission.
It also failed to pass the so called ‘Howey Test’ which primarily aims to make investors proclaim all of their assets. This is of course a violation under US Federal Law.
Mentioned companies has yet to issue any statement from the accusations and trial date are yet to be determined.