US Justice issues lawsuit against crypto companies
The courts of the Southern District of New York issued 11 lawsuits against a total of 42 defendants from 16 jurisdictions
The United States Department of Justice is citing various cryptocurrency companies after alleged irregularities in the sale of unregistered securities.
Specifically, the courts of the Southern District of New York were the protagonists in 11 lawsuits against 42 defendants from 16 different jurisdictions.
Among the defendants we can see large companies such as Binance, KuCoin, Tron Foundation, BitMEX, Block.One and Civic. The allegations filed indicate the defendants incurred the sale of unregistered securities to the US authorities for the trading of tokens.
Justice ensures that companies would have taken advantage of the lack of understanding and awareness about cryptocurrencies and blockchain technology in the sale of utility tokens.
In the lawsuit they allege that the “utility tokens” are to be evaluated as securities in the legal sense and that, therefore, their sale can be considered as an illegal sale of securities within the US market.
Some of the companies are being sued for selling “their own” tokens, while others are being accused of being part of the scheme.
K. Tovar
Source: Beincrypto
