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.