A group of unhappy EOS investors filed another lawsuit against Block.One, wherein they alleged that the blockchain company defrauded them through the Initial Coin Offering (ICO) of its cryptocurrency dubbed EOS. This class-action against the company is the second time where Block.one has been confronted about the ICO.
EOS investors file 2nd lawsuit vs Block.One
Per the complaints, the blockchain software company began offering the EOS digital currency in the past three years. It reportedly sold about 900 million tokens so that it garnered about $4 billion, given that the company aggressively advertised the tokens through popular mediums in the US and many other nations.
For instance, the ICO was advertised using Times Square billboard ad, cryptocurrency news outlets, blockchain meet-ups, and conferences, etc. Block.one reportedly touted that the token offering was meant to fund a new software that will be more superior to Ethereum and Bitcoin blockchain.
During this period, the company had failed to register the offering with the country’s SEC, which is usually required under the American securities law, the investors said in the latest Block.One EOS lawsuit. More so, the company couldn’t even seek an exemption to avoid registration from the regulator, although it is not qualified.
On this course, Grant & Eisenhofer, with many other investor advocates, filed the second Block.One EOS lawsuit on behalf of the people who bought the token from the blockchain company during the offering in the past three years to date.
Block.one settles the first lawsuit with US SEC
The Block.one EOS lawsuit is explicitly accusing the company of breaching fiduciary duty, as well as unjust enrichment. Apparently, the investors are disgruntled on the assumption that the token offering only profited the company while leaving them tokens, which are likely crypto-dust.
The US SEC halted the sales of the tokens in September last year, saying that the company was issuing securities without the required approval. Later, the company settled the regulator with $24 million, which represents only 0.6 percent of the total funds it raised through the alleged illegal token offering. The source of the amount was suspect after a wallet containing $52M in user funds was shut down almost a month ago.