Compound Coin (COMP) Case

N.D. California

Court

22-CV-07781

Case number

Compound DAO and the Partners sold Unregistered COMP directly to investors through the Compound protocol, in exchange for using the service and paying fees. 

Compound DAO and the Partners also solicited sales of COMP on the secondary market through their extensive promotion of COMP, their efforts to facilitate and encourage a robust secondary market for COMP, and their performance of other steps necessary to the widespread distribution of COMP to Investors.

The Company and the Partners offered and sold COMP to the public and solicited such sales without registration that put the extra risk of damages on their Holders and make its marketing, promotion, and distribution illegal.
On May 11, 2021, the value of a COMP token was $854, and the total market capitalization was over $4 billion. 
Six weeks later, COMP experienced its first crash. The value of a token fell to $222 on June 25, 2021, and the total market capitalization was $1.18 billion. 
Since November 2021, it has experienced a consistent decline in value. The market capitalization was $1.33 billion on January 1. It was $1.06 billion on April 1. It was $423 million on August 1. On November 1, 2022, it was $360 million. 
On December 1, 2022, it was $276 million.

Since the launch the COMP price has fallen over 85%, seriously damaging Investors and Consumers.

Case Status

Attorney Investigation

Alleged Offence

Mismanagement,

Misleading Statements,

Financial Misrepresentation,

Fraud,

Failure to Disclose,

Malpractice,

Negligence,

Breach of Fiduciary duty,

Omissions

Suspected Party

Directors,

Management,

Shareholder,

Influencer,

Investment Bank,

Service Provider

Security Type

Crypto Asset

Trade Direction

Long

Shock Event Date

12/19/2022

Filing date

12/08/2022

Judge

Hon. William H. Orrick

Compound Coin (COMP) Case

Collecting participants…