Court to Dismiss Lawsuit Against FLiK ICO

Judge said evidence of securities violations or misrepresentation were not provided, so that's his decision
04 March 2020   356

On March 3, District Judge Charles Pannell dismissed a lawsuit against rap artist T.I., who was accused of securities fraud by selling FLiK tokens during an ICO in August 2017.

As the judge explained in his decision, he was not provided with evidence of securities violations or misrepresentation, since T.I. did not make any statements about the cost of tokens.

The plaintiffs have merely alleged that Harris encouraged his Twitter followers to visit the website for the FLiK ICO. They have not provided any statements from Harris about the value of the FLiK tokens. The facts as pleaded do not rise to the level of particularity required.

 

Charles Pannell

District Judge

According to the decision, the plaintiffs also failed to prove that T.I. constituted a violation of securities law at the state level of Georgia. Neither the issuing company nor the plaintiffs were in the state. Moreover, they do not even claim to have visited Georgia or made transactions with local financial institutions.

The representative of the defendant said that he was satisfied with the decision of the judge.

T.I., known by his real name as Clifford Harris Jr., was accused by 25 investors of violating state securities laws, illicit enrichment, misrepresentation, and causing loss.

The FLiK token grew by more than 400% from August to October 2017 from $ 0.06 to $ 0.30, after which it fell by 53% to $ 0.14 in three months. In April 2018, the company announced that it would not be able to launch its platform on time. By August, the price dropped to $ 0.08. The plaintiffs estimated the total loss at more than $ 2 million.

Neo Foundation to Withdraw $11M From Cold Wallet

These funds will be used to finance its operations in currrent reporting year and $190M are stiill in the vault
26 March 2020   239

On March 25, the Neo Foundation announced the withdrawal of 1,660,865 NEO ($ 11 million) from the cold wallet to finance its activities in the current reporting year. About $ 190 million are still in reserves.

According to rules established in the Neo White Paper, the NEO tokens maintained by the Neo Foundation are mainly used to continuously support Neo's technological development, ecosystem growth, community expansion and the normal operations of the foundation and related organizations. 

 

Neo Foundation

According to the publication, 1,660,865 NEOs were transferred “from a blocked account to a current account”. As the information on the blockchain shows, these funds were directed to an address containing 14.6 million NEO or about $ 100 million. The project does not disclose who controls this address and what fate awaits the released tokens.

White paper Neo suggests that project costs in any given year should not exceed 15 million tokens. In the near future, a financial report for 2019 will be published.

At the time of publication, NEO is the 23rd largest asset on the market with a capitalization of $ 479 million. The price of one NEO is $ 6.79.