in Zuschüsse

a complaint is filed for violation of the Securities Act

On May 18, a complaint was filed against block.one for violation of the Securities Act, whereby investors are seeking to recover funds invested in the initial coin offering for EOS, which totaled $4 billion in crypto assets.

Plaintiffs‘ lawyers are seeking over $200 million of the illegally collected money. The complaint alleges that EOS was an unregistered security offer by block.one.

Block.one is the development company that led the ICO for EOS, which many saw as a form of investment in the company.

Vitalik Buterin shows respect for EOS

Under the EOS pre-sale purchase agreements, investors in the United States were warned not to participate in the fundraising round.

This was an effort to avoid conflict with the Securities and Exchange Commission (SEC). Block.one did not register the offering in the United States as a security or under the securities registration exemptions. So they relied on their measures to bypass U.S. investors entirely as their means of compliance with the nation’s regulator.

But this represented a clear violation of the U.S. Securities Act by the block.one and blockchain-based municipal bond, posed as the official account, coinbase’s custodial arm, possible competitive edges, for a school in south africa, beef up security protocols, bitwise investment management, regulate crypto exchanges, september 2020 hack, history of bitcoin mining fraud, so the complaint has stood.

However, some U.S. investors participated in the ICO, and block.one ended up meeting with the SEC anyway. In September, block.one reached an agreement with the commission of 24 million dollars.

Block.one reveals plan to start voting in the EOS Blockchain

The new charges
Despite the agreement, further accusations were subsequently made. Among the new accusations is the allegation that the company knowingly and deliberately sought out American investors:

„From 2017 to the present, to further the demand for EOS Securities, the defendants have aggressively courted investors across the U.S. Block.one was first announced at a May 2017 conference in New York City, and punctuated its arrival with expensive advertising space on a Times Square billboard.

As for the amount of investment that actually came from the U.S., James Koutoulas, one of the plaintiffs‘ lawyers, said they were „estimating a minimum of 200M in U.S. losses.

In early April, the law firm Roche Cyrulnik Freedman filed a series of class action lawsuits against several cryptography companies, including block.one, based on similar allegations. Despite the new allegations, block.one has not commented on them.