Connecticut rules cryptocurrencies are not securities
A jury ruled and indicated that digital assets cannot be considered in this category, which is considered as the first verdict
A jury in Connecticut, in the United States, recently ruled that digital assets that are linked to cryptocurrencies cannot be considered as securities.
The decision is considered in this world as the first verdict of its kind. Given this situation, GAW Miners investor Stuart Fraser was acquitted of liability in a fraudulent transaction co-opted by ZenMiner LLC.
“It is the first case that we know of in which a jury addressed whether cryptocurrency products were securities,” one of the defendant’s representatives, Daniel Weiner, of Hughes Hubbard & Reed LLP, told the US media.
The case against GAW Miners has been ongoing since 2017 when co-founder Homero Joshua Garza pleaded guilty to wire fraud. This left Fraser, a 41 % investor in GAW, as the only remaining defendant in the case.
After deliberation, the jury concluded that none of GAW’s four products, including promissory notes called “hash points”, tokens called “Paycoin” and virtual wallets called “Hashstakers”, were considered unregistered securities.
K. Tovar
Source: Law360
