Nasdaq Listed "Blockchain" Companies Faced Legal Issues

Long Blockchain Corp and Riot Blockchain Corp. are facing legal issues at the moment
26 February 2018   326

Adding the word "blockchain" to its name turned out to be a very profitable practice for many companies traded on stock exchanges last year. As it turned out, this medal has the opposite side. Bitcoin. com reports about it.

A class-action lawsuit against Riot Blockchain,Inc. (NASDAQ: RIOT) filed by investors from Florida. They argue that the company, its management and one of the largest shareholders violated the requirements of the Securities Exchange Act of 1934.

Until October 2017, the company was named Bioptix, Inc. and specialized in the development of diagnostic tools for veterinarians. On October 4, Bioptix announced that it will be called Riot Blockchain and will be engaged in investing in blockchain. The plaintiffs assume that the company disseminated false information and did not conduct real activities, while the prices of its shares continued to grow artificially.

In particular, Riot Blockchain did not say that it changes its name to attract investors and to link its company to the growth of the crypto market without having any significant presence on it and thus hoping to help Barry Honig, its main shareholder, later to sell his shares at artificially high prices.

Long Blockchain Corp. (NASDAQ: LBCC) in turn received a notice from Nasdaq, which says that the stock exchange decided to conduct delisting of the company's shares. Until June 2017 the company was called Long Island Iced Tea. The day after re-branding, its shares rose by 432%.

The company can appeal against Nasdaq's decision if it meets the requirements of the exchange, according to which the capitalization of its shares in the market should not fall below $ 35 million within 10 consecutive working days.

US Congressman to Call for Crypto Ban

As reported, Brad Sherman has called for a blanket ban on cryptocurrency buying
19 July 2018   77

American authorities should ban cryptocurrencies and mining. Such a statement on was made by Congressman Brad Sherman during the hearings of the Committee on Financial Services at the US House of Representatives, CoinDesk reports.

According to Sherman, in the future, cryptocurrencies may become a form of money, but at the moment they are used either by rogue states to bypass American sanctions or by individuals to evade taxes.

We should prohibit U.S. persons from buying or mining cryptocurrencies.
 

Brad Sherman

Congressman, US

At the same time, Norbert Mitchel, director of the Data Analysis Center of the Heritage Foundation, noted that the possible use of crypto-currency for criminal purposes should not stain other possibilities of digital currencies.

Yes it is true that criminals have used bitcoin, but it's also true that criminals have used airplanes, computers and automobiles. We shouldn't criminalize any of those instruments simply because criminals used them. Those components I believe are the main barriers to widespread adoption in the U.S.
 

Norbert Mitchel

Director of the Data Analysis Center, Heritage Foundation

As Eswar Prasad, senior professor at Cornell University, said, the existence of cryptocurrencies had the potential to impact the financial services system, particularly the payments system, in positive ways.