April 3 saw 11 crypto exchange lawsuits filed in the state of New York targeting 7 major crypto firms. The organization behind the lawsuits is Roche Freedman for illegal and fraudulent sales.
These class-action suits have indicted companies like Binance, the Tron foundation, Block.one, BitMEX and many others. The lawsuits have also dragged in some of the famous personalities of the crypto sphere such as Changpeng Zhao, Brendan Blumer, Vinny Lingham, and Dan Larimer
Unlicensed securities and market manipulation
In these crypto exchange lawsuits, the plaintiffs have alleged the exchanges with selling unlicensed securities without proper licensing and market manipulating. It is also alleged that these exchanges have also withheld certain parts of information from the investing parties to ascertain their token sales.
The crypto tokens that have been accused are ETHLend (LEND), TomoChain (TOMO), Funfair (FUN), EOS, Bibox Token(BIX), Tron(TRX), Quantstamp(QSP), OmiseGO (OMG), Kyber Network(KNC), Aelf (ELF), Bancor (BNT), Status (SNT), Icon (ICX).
Crypto exchange lawsuits to proceed slowly
A lot of the alleged parties do not belong to the United States of America and thus the proceedings for them will move ahead via Hague Convention. Also, a lot of Asian and European nations are under total lockdown due to the COVID-19 pandemic, which will certainly delay the court proceedings. For parties outside the US, the proceedings will invoke some more discussion around this case.
Roche Freedman is the same law firm that has also been representing Kleiman’s estate and Dave Kleiman with the ongoing lawsuit against Craig Wright who claims to be Satoshi Nakamoto.
The case involves different parties hailing from the US, Canada, China, Cayman Islands, Japan, Israel, South Africa, Vietnam, Switzerland, Seychelles, Singapore, Taiwan, Malta, and Estonia. A total of 42 parties are accused of illegal sales in these 11 different lawsuits filed in Manhattan Federal Court.