Lawsuit filed against ATB ICO

The plaintiff asserts that the company violated the securities law
28 December 2017   724

On December 21, a class action was filed against ATBCoin and its founders. This is reported by CoinDesk.

Raymond Balestra filed a class action suit in the Southern District of New York against ATBCoin LLC, Edward Ng (CEO) and Herbert W. Hoover (co-founder). The plaintiff asserts that the company violated the law on securities, since it issued unregistered securities that allow its holders to rely on income in the coins of ATB.

The ATB ICO was a clear offer and sale of securities because, inter alia [among other things], Defendants touted, and Plaintiff and other ATB ICO investors reasonably expected, that the ATB Coins received in exchange for their investments would be worth more than the ETH, BTC, LTC or other currencies invested.

Lawsuit against ATB ICO

The sale of tokens of a fast and low-cost payment system based on the ATB blockchain started on July 12 and ran through July 12, according to the company's blog. According to the plaintiff, in August, ATBCoin launched the second part of the campaign and continued to attract funding even in September.

The plaintiff invested 2.1 ETH on 12 August. How much money was collected during the ICO is not reported, but the prosecution claims that this value is in the range between $ 20,400,000 and $ 24,210,000 in equivalent in BTC, ETH and LTC.

There is no information about this situation on the official chanels and website of the project. ATB Coin support refused to comment this situation in projects Telegram. 

Tezos is another ICO project with lawsuits against it. 

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3 ICOs of Extrabit banned by Alabama Securities Watchdog

Alabama Securities Commission (ASC) has ordered alleged cryptocurrency mining firm Extrabit to stop its token sale offering in the state
25 May 2018   57

The U.S. state's securities regulator, the Alabama Securities Commission (ASC), has supported its colleagues in Texas and New Jersey in hitting out at ICOs that are soliciting local citizens. The cease-and-desist order which was published yesterday  claimed that the agency has ordered purported cryptocurrency mining firm Extrabit to cease its token sale offering in the state.

The ASC declared the company has been illegally begging Alabama investors with what it considers an unregistered securities offering after it announced its token sale on the website of WSFA, an NBC-affiliated TV station recognized in the state capital, Montgomery. While presently the online advertisement appears to have been taken down, the agency said in the order that the firm originally claimed that investors in the pre-ICO phase could buy Extrabit's token "EXB" at half price.

The advertisement claimed that in order to take part in the pre-sale, the user should invest $20,000 and after the purchase, the tokens will be sent to MyEtherWallet within 48 hours. Then, Extrabit's white paper states that, since the firm generates its profits chiefly from mining bitcoin, zcash and monero, it pledges a 185 percent return on investment every quarter for investors who maintain a positive balance in their EXB wallet.

As well as offering unbooked securities, the ASC said the project made "materially misleading" suggestions to deceive investors. Extrabit is not the only token project that is targeting residents in Alabama. A Google search for "token sale" on the WSFA website currently comes up with over 200 press release-style ads from various ICO projects. 

The ASC has also checked two other token sale projects, called LEV and Platinum, with cease-and-desist orders entered on May 2 and May 18. Like with Extrabit, the agency charged the two projects of selling unregistered securities in Alabama while making vaporous promises to potential investors over the likely returns on investment.